JAKARTA. At the end of 2023, PT Bank KB Bukopin Tbk (BBKP) targets a non-performing loan (NPL) ratio of below 5% and a loan at risk (LAR) ratio of below 20%. To reach that target level, BBKP will sell non-performing loans worth IDR 2 trillion.

2023 will be the year for KB Bukopin to continue its asset refining measures to achieve a Net Performing Loan (NPL) ratio or non-performing loans according to a healthy level set by the regulator.

Main Deputy Director Robby Mondong revealed that there are around IDR 2 trillion of non-performing loans that must be sold this year. "The asset sale scheme is likely to be slightly different from last year. We are currently still in talks," he said last week.

Throughout 2022, KB Bukopin has succeeded in selling IDR 5.4 trillion of non-performing loans in bulk sales using an asset swap scheme or swapping low-quality assets for debentures. In June 2022, BBKP had sold problem assets and risky loans worth IDR 4.13 trillion from 180 debtors to IDMB United with a selling value of IDR 2.65 trillion or the equivalent of US$ 183.1 million. The payment mechanism is taken through the issuance of a US$180 million private bond (bond) with a 5-year tenor.

Bukopin also sold NPLs worth IDR 1.3 trillion to PT Perusahaan Pengelola Aset (PPA) under an asset swap scheme where low quality assets are combined with productive assets in the form of sukuk. (AM/LM)