Bank Mandiri announces effort to reduce bad loans
Bank Mandiri, owned by the Indonesian government, is embarking on a new effort to reduce its bad loans through a restructuring program; the bank is targeting a NPL ratio  of 3.5% by the end of 2017. This comes after gross NPLs rose from 2.6% in 2015 to a worrying 4% in 2016.

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Linkedin Anton Hermansyah (The Jakarta Post) Jakarta ● Thu, March 16 2017

State-owned lender Bank Mandiri is looking to cut down its bad loans this year through a restructuring program, which it believes will bring the non-performing loan (NPL) ratio to 3.5 percent by year-end.

Its gross NPL soared to 4 percent in 2016 from 2.6 percent in 2015, while its net NPL ratio also increased to 1.5 percent from 0.9 percent.

The rising bad loans mostly came from the commercial segment, especially from debtors in the commodity sector due to falling commodity prices, which disturbed the debtors’ repayment ability.

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