BI Reports Papua's NPL Stable at 2.67% in Q1 2026, Credit Growth Slows

Jayapura (ANTARA) - The Bank Indonesia (BI) Papua Representative Office has stated that financial system stability in Papua and the New Autonomous Regions (DOB) remained maintained during the first quarter of 2026, with non-performing loans (NPL) at a level of 2.67 per cent.

The Head of the Bank Indonesia Papua Province Representative Office, Warsono, in Jayapura on Thursday, stated that banking intermediation performance in the Papua region remains in a healthy condition, despite a slowdown in the credit growth rate.

“Regional financial stability in the first quarter of 2026 remains maintained, reflected by an NPL of 2.67 per cent, which is still below the safe threshold,” he said.

According to Warsono, banking credit distribution during this period grew by 8.83 per cent year-on-year (yoy), representing a slowdown compared to the previous quarter, which grew by 10.08 per cent (yoy).

“Credit growth was primarily supported by investment credit, which grew significantly at 26.94 per cent (yoy), as well as consumer credit, which increased by 9.71 per cent (yoy),” he noted.

Consumer credit was dominated by the growth of mortgage loans (KPR). Meanwhile, credit for micro, small, and medium enterprises (MSMEs) showed improvement, growing by 0.91 per cent (yoy) after contracting by 0.99 per cent (yoy) in the previous quarter.

“From the perspective of fund collection, third-party funds (DPK) grew by 8.42 per cent (yoy), higher than the 6.54 per cent growth recorded in the previous quarter,” he added.

He further explained that the increase in third-party funds primarily originated from checking and savings accounts, with checking account growth driven by an increase in government sector deposits.

“We assess that these conditions indicate that the banking intermediation function in Papua and the New Autonomous Regions continues to operate well, supporting the sustainable resilience of the regional financial sector,” he concluded.