Strategies for Reducing Non-Performing Loans at BPR Papua Mandiri Makmur: An Analysis of Internal Credit Management Practices
Abstract
This study investigates the internal operational determinants of Non-Performing Loan (NPL) formation at BPR Papua Mandiri Makmur (BPR PMM), focusing on Account Officer (AO) competence, monitoring discipline, and SOP implementation. A qualitative case study design was employed. Data were collected through semi-structured interviews with ten internal respondents and four external practitioners, with thematic analysis applied across all transcripts. Three interconnected failure layers were identified: origination competence gaps (collateral over-weighting, omset inflation), reactive monitoring architecture (no risk-differentiated protocol or visit log), and SOP governance failures (normalized incomplete-file disbursement, incentive misalignment). This study extends Human Capital Theory, Credit Supervision Theory, and Internal Control Theory to the specific context of a remote rural bank in eastern Indonesia, contributing process-level evidence on how operational weaknesses interact to produce NPL outcomes. Rural bank credit risk; Account Officer judgment; loan monitoring architecture; SOP governance; internal determinants of default; qualitative case study.
Downloads
Copyright (c) 2026 Muhammad Rosihan Anwar, Raden Aswin Rahadi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
An author who publishes in the EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis agrees to the following terms:
Author retains the copyright and grants the journal the right of first publication of the work simultaneously licensed under the Creative Commons Attribution-ShareAlike 4.0 License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal
Submission of a manuscript implies that the submitted work has not been published before (except as part of a thesis or report, or abstract); that it is not under consideration for publication elsewhere; that its publication has been approved by all co-authors. If and when the manuscript is accepted for publication, the author(s) still hold the copyright and retain publishing rights without restrictions. For the new invention, authors are suggested to manage its patent before published. The license type is CC-BY-SA 4.0.
EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
