Pefindo credit bureau sees signs of recovery despite rising bad debts – business
Yunindita Prasidya (The Jakarta Post)
Wed Aug 5, 2020
Private credit bureau PT Pefindo Biro Kredit reported that it was seeing early signs of recovery of loan disbursements due to rising credit demands, although it noted an increase in bad debts and high debtors. risk amid the ongoing pandemic.
A credit check is an institution’s request for information about a borrower’s credit report following a credit application.
The bureau said it had seen an increase from more than 100,000 credit requests recorded in June to more than 378,700 requests, down from a year-round low of around 263,000 requests in May, according to the CEO of Pefindo Biro Kredit, Yohanes Arts Abimanyu.
It was seen as a positive sign even though it was lower than the figure for the first three months of the year, which exceeded one million requests per month.
“After large-scale social restrictions [PSBB] were relaxed, several financial institutions started channeling loans, but this was limited, as evidenced by the upward curve of credit inquiries, ”Yohanes said at a virtual press briefing Tuesday.
The economic impact of the COVID-19 pandemic has depressed the purchasing power of the public and businesses, leading to cooling demand for loans and difficulty repaying existing loans. The economy contracted 5.32% in the second quarter of this year.
Pefindo Biro Kredit recorded a 0.58% drop in the month-over-month credit portfolio among its 296 members in June to 3.36 quadrillion rupees, although the figure is still an increase of 3.06 % from April to May.
Bureau data shows that in June, banks accounted for 16.7% of total inquiries this year. In 2019, bank inquiries made up 11.8% of total inquiries.
The reverse trend was seen in multi-finance surveys, which accounted for the majority at 74.7% in June this year, up from 78% of total surveys last year.
The loan disbursement rate among banks rose only 1.49% year-on-year in June, much slower than 3.04% in May, according to data from the Financial Services Authority (OJK). The government decided to increase disbursements by placing 30 trillion rupees (US $ 2 billion) in public banks in June.
However, the credit bureau has noted an increase in the rate of non-performing loans (NPLs) among its members. It recorded an NPL rate of 3.61% in June, down from 3.14% in May and 3.2% in March.
Data from the OJK shows that the banking sector’s NPL rate rose to 3.1% in June from 3.01% in May. At the same time, non-performing financing (NPF) increased to 5.12% from 4.41% during the same period.
The office noted that 45.5% of debtors were classified as high and very high risk in May of this year, up from 41.2% last year.
Low and very low risk debtors accounted for 33.7%, up from 45.3% last year.
“We have seen an increase in the percentage of debtors in the high risk to very high risk categories and a decrease in low and very low risk debtors,” added Yohanes.
Pefindo Biro Kredit, head of research and development, Lucky Herviana, said the growing trend of high-risk debtors may continue in the future.
“Changes in the risk profile are still very likely to occur,” Lucky said.
The credit bureau forecast average credit growth to be 2-3% this year, given the slowing economy, weak consumption, weak foreign investment and the impact of the crisis. pandemic.
Credit growth is expected to slow to 2.5% this year, down from 6.1% in 2019, according to Bank Indonesia’s banking survey released in July.
Bank Indonesia Governor Perry Warjiyo said on July 16 that loan disbursements were limited due to slowing domestic demand as banks try to avoid risks amid intensifying restructuring debt. The central bank lowered its benchmark interest rate to 4% to support the economy.