Online Loans Trigger Rise in Mortgage NPLs, BTN Prepares Bundling Scheme

The rise in problematic credit or non-performing loans (NPLs) in the housing sector is starting to attract attention. One trigger stems from the use of online loans after customers have taken out home ownership credit (KPR). Managing Director of PT Bank Tabungan Negara (BTN), Nixon Napitupulu, explained that many customers do not calculate their ongoing needs after buying a house. The need to furnish the house drives them to seek additional loans outside the banking system. “(After) getting the keys (for the KPR house), they then have to fill the house and end up turning to online loans with suffocating interest rates,” Nixon said during a press conference in Bandung on Thursday (9/4/2026). Bank Indonesia data indicates this trend. The NPL ratio rose from 2.88% to 3.19% year-on-year. Credit growth also slowed from 10.24% to 5.26% in February. BTN assesses that this situation aligns with findings in the field. Nevertheless, the KPR NPL ratio internally at BTN began to improve in March 2026. “The NPL in March dropped compared to February and January positions. It’s already below three. So it’s back to 2.8% to 2.9%,” he stated. BTN views that pressure on credit quality is not only triggered by macro factors. Customer financing behaviour also plays a role, particularly the use of consumptive loans outside the banking system. BTN is then preparing a product credit bundling strategy. This scheme combines KPR with additional credit in one agreement so that customer needs are met from the start. “We will launch it; as soon as we provide KPR, at the same time we will provide Light Credit. One for buying the house, the other for furnishing it,” Nixon said. “Our calculation is that the NPL ratio will improve. Processing costs will be cheaper because one person can get two products in one agreement,” Nixon added. BTN notes that the profile of KPR customers is dominated by the millennial group with a portion of around 80% each year. This group has high consumption needs at the start of home ownership, making them more vulnerable to seeking additional loans. The bundling scheme is expected to reduce dependence on online loans while maintaining credit quality amid the slowdown in KPR growth.