The Papua Financial Services Authority (OJK) calls the Management of PT. Papua Regional Development Bank (BPD) until the end of 2018 has succeeded in making significant improvements to the problem of non-performing loans (NPLs) that they have experienced since 2015.
“Bank Papua’s net NPL in December 2018 position was 2.26 percent, then gross NPL of 7.35 percent. Actually the target of gross NPL was 5 percent, but the achievement was 7.35 percent from the previous 14.52 percent, that has been a significant improvement,” said the Head of OJK Papua, Adolf FT. Simanjuntak in Jayapura, as quoted by Antara, Tuesday (12/2)
He explained that since 2016, Bank Papua had made improvements on every line, there was a change of credit in credit, then there was a change of management, all of which was done in order to improve the company’s performance. According to him, the improvements that occur are inseparable from the role of shareholders who continue to be committed to strengthening the capital / Capital Adequacy Ratio (CAR) of Bank Papua.
“The condition of Bank Papua is supported by a strong bank CAR whose position in December 2018 is 23.70 percent of our minimum provisions of 8 percent. This means that Bank Papua’s capital is very strong,” he said. But Adolf emphasized that Bank Papua was still under OJK monitoring and that every month they were required to submit a performance report. OJK said that it always monitors credit, especially for new financing.
“In 2019 Bank Papua will always be monitored by OJK. This bank has just finished facing a big problem, it is only about to recover. It is like entering a hospital into a hospital, now (Bank Papua) is outpatient, if we go for treatment, we should not take care. again, “he said. In 2019, the FSA continues to ask the management of Bank Papua to focus on repairs on all fronts, and not to make large amounts of financing until the system built is ready and strong.