Different standards, different provisioning?

The facade of Bank Indonesia building is seen in the capital city of Jakarta. It has estimated that bad loans would decline to less than 2% of outstanding loans this year.

UNIQUELY, the non-performing loans (NPLs) of the biggest banks in Indonesia that are significantly controlled by state agencies and prominent families record a lower rate of delinquent loans compared with foreign-owned banks.

For instance, PT Bank Mandiri Tbk’s gross NPL ratio as at end-2013 was 1.6% of total assets, while CIMB Group’s PT Bank CIMB Niaga Tbk and Malayan Banking Bhd’s PT Bank Internasional Indonesia Tbk’s ratio was 2.23% and 2.11%, respectively.