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During major economic crisis, commercial banks may experience a significant raise in non-performing loan (NPL) portfolio, posing business risks to the ongoing business of the bank and eventually systemic risks to the overall banking and financial sectors. In preventing such potential risks to Indonesia economy, PPA plays role in handling and managing the NPL assets of banking companies. This effort is expected to assist the Banks in divesting loans that can hinder their operational and financial performance.  

Secured in a B2B Agreement with the Banks, PPA manages the NPL assets through off balance or on balance sheet scheme. Under the off balance sheet mechanism, PPA will use AMC (SPV) as a tool in managing NPL portfolio.