Author Topic: Tempo English Version 2017, March 27 - April 2  (Read 848 times)

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Tempo English Version 2017, March 27 - April 2
| March 29, 2017, 03:40:10 PM

2017, March 27 - April 02 --- Tempo

The banking industry needs to put its house in order, given the recent rise in the number of non-performing loans. This trend should also serve as an early warning for the government to reassess the huge infrastructure projects initiated by President Joko Widodo. The increase in problem loans can be traced to at least two conditions. Firstly, there is the fall in the prices of several commodities, especially coal. For years, with the price of this 'black gold' remaining high, mining companies were primadonnas. Banks paid out loans for new mining permits here, there and everywhere. Consumer credit for purchases such as luxury cars also flowed freely to welcome the emergence of the nouveau riche mining companies. Payments to private companies by state-owned enterprises began to dry up. For example, cement suppliers were not paid for months. These companies then had problems repaying their bank credit. And the number of problem loans began to rise.


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