BTN Maintains Credit Quality Despite Sumatra Disaster Restructuring

Jakarta (ANTARA) - PT Bank Tabungan Negara (Persero) Tbk (BTN) has ensured that the quality of its credit portfolio remains maintained despite the policy of credit restructuring due to the floods that hit the Sumatra region at the end of 2025. “Because we are restructuring, of course, during the restructuring period, the impact on quality (of credit) can be well managed,” said BTN Consumer Banking Director Hirwandi Gafar in response to reporters’ questions during a press conference in Jakarta on Wednesday (15/4). Hirwandi noted that the value of restructured credit is around Rp530-550 billion, and most of it consists of subsidised home ownership credit (KPR). He also assured that the restructuring policy, which provides payment flexibility for instalments over one year, refers to the applicable OJK Regulation (POJK). Regarding the recovery process, Hirwandi explained that each region has different recovery rates. He estimated that the Aceh region would require a longer time for recovery, especially related to infrastructure repairs and environmental cleaning, while West Sumatra and North Sumatra would recover relatively faster. He also noted that BTN’s non-performing loan (NPL) ratio is on an improving monthly trend up to the March 2026 position. Specifically, the NPL for subsidised KPR is below 1.4 percent as of March 2026, indicating increasingly better credit management. Meanwhile, BTN President Director Nixon LP Napitupulu explained that the restructuring policy is set uniformly with a one-year period as a quick response to the emergency conditions in the field. At the beginning of the disaster, he said, access to several affected areas was still very limited, so the bank had not yet conducted a more detailed assessment of each debtor’s needs. “Penetrating the locations was difficult at several points. So how can we make a judgement? In the end, we made a regulation, alright, the same for one year first,” he said. “I think only then, approaching one year, we can review again which ones cannot be extended because they have recovered, which ones can continue (still need restructuring), and which ones must fall (cannot be recovered). So the total problem is Rp530-550 billion,” said Nixon. It is known that the Financial Services Authority (OJK) has provided special policies for customers receiving credit and financing services or debtors affected by disasters in Aceh, North Sumatra, and West Sumatra. The policy for debtors affected by the disaster in Sumatra applies for three years from the determination date, namely 10 December 2025. Based on OJK data as of the end of December 2025, the credit restructuring provided reached Rp12.58 trillion to 237,083 customers affected by the disaster in three provinces in the Sumatra region.