NPF Leasing Is Getting Wider, OJK Opens Voice

JAKARTA - The Financial Services Authority (OJK) responded to the increase in the ratio of non-performing loans (NPL) that occurred during the first semester of 2023.

According to the Chief Executive of Insurance Supervision, Guarantee and Pension Fund Ogi Prastomiyono, based on the monthly report for the period of June 2023, it is known that NPF Gross is a financing company (leasing) industry of 2.67 percent.

"This figure is up 0.35 percent year to date (ytd) from the previous 2.32 percent in December 2022," he said in a written statement Friday, August 4.

According to Ogi, the net NPF for the financing company industry is 0.73 percent, an increase of 0.16 percent ytd from the previous 0.58 percent in December 2022.

"From these statistical data, there is a slight increase in credit risk in the financing industry, but the credit risk is still quite under control," he stressed.

Ogi explained that the financing company has also formed sufficient reserves in order to mitigate the credit risk, which is reflected in the total CKPN coverage compared to the total non-performing financing receivables of 213.26 percent.

"OJK always urges finance companies in the primary meeting to always channel financing by taking into account the precautionary principle," he said.

In addition, the authorities also encourage good corporate risk management and governance for the sustainability of healthy businesses in the future. Furthermore, Ogi revealed that in June 2023, there were three finance companies that violated the net NPF provisions.

"On this matter, OJK asked the company to convey the action plan for fulfilling the NPF accompanied by steps to be taken and the period for fulfilling the NPF provisions," he concluded.