VIVAnews - Investment credit for agribusiness financing is estimated to have the highest ratio of non-performing loans reaching seven percent.
According to an economist of the Indonesia Economic Intelligence (IEI) Sunarsip, the high NPL in agribusiness sector is due to the high business risk.
"Agribusiness sector has high failure risk because it is related to seasons and other external factors," he said on Sunday, March 29.
In addition, he wen on to say, the fall in commodities' prices also affect the high NPL. "As a result, companies' ability to pay decreases," he said.
However, NPL of investment credit in property sector recorded the highest growth, doubling its amount in January 2009 compared to November 2008.
"In January, NPL of property investment touched four percent and kept rising," said the other IEI economist Sri Yani Kusumastuti.
Kusumastuti explained that investment credit had the largest portion compared to consumption and working capital credit. Nonetheless, she added that consumption credit showed rapid growth.
"It's normal if the growth is fast. For instance, NPL of credit card may be above 10 percent because banks ease credit card issuance for the public," she said.
However, NPL of total credit is still below five percent. In January 2009, the NPL exceeded 3.5 percent. "
"Above five percent NPL is recorded by industry and construction sectors," she said.
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Translated by: Bonardo Maulana Wahono
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