Bank BTN Successfully Cuts NPL To Nearly IDR 900 Billion

President Director of Bank BTN Nixon LP Napitupulu. (Photo: Doc. ANTARA)

JAKARTA PT Bank Tabungan Negara (Persero) Tbk (BBTN) collaborated with PT Perusahaan Pengelola Assets (PPA) in completing low-quality or Non-Performing Loan (NPL) assets.

With this synergy, Bank BTN managed to significantly cut NPL by almost Rp900 billion.

President Director of Bank BTN Nixon LP Napitupulu said the transaction to settle low-quality assets had been completed by the Company and related parties at the end of last year.

As a result, this transaction managed to significantly cut the NPL ratio.

"This settlement is expected to support the improvement in the quality of BTN Bank assets which has an impact on improving the Company's performance. Through this settlement, we are optimistic that it can improve the NPL ratio which is expected to contribute to the Company's business growth," Nixon said in a written statement, Friday, January 5.

According to Nixon, the completion of this NPL is a tangible manifestation of the synergy of SOEs as well as the commitment of Bank BTN to always improve asset quality, so that Bank BTN can focus on providing home ownership solutions for the community.

"Efforts to improve asset quality at Bank BTN are in line with the Company's business direction to actively support the government in increasing the provision of decent housing through the best housing financing services," he said.

PPA President Director Muhammad Teguh Wirahadikusumah said PPA as part of the Danareksa BUMN Holding was committed to supporting national banking stability through the solution to the NPL settlement.

The PPA as an arranger assists BTN in completing NPL through careful due diligence, communication with relevant stakeholders, and prioritizing measurable risk management.

"The settlement of Bank BTN NPL is expected to open up wide opportunities to synergize with the banking industry, especially the Association of State-Owned Banks (Himbara) and the private sector, so that it can provide value and benefits for the Indonesian banking industry," Teguh concluded.

For information, the synergy between Bank BTN and PPA has been carried out in recent years.

In this case, PPA has experience in the business of managing problematic assets in several private banks.