Analysis of Credit Financing Management Working Capital at Maluku Malut Bank West Halmahera Regency

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FORMOSA NEWS - Maluku - Bank Maluku Malut's Working Capital Credit Management Deemed Effective in Maintaining NPL Amid MSME Challenges. This finding was revealed in the latest research written by Shindi Arklaudia Dansa, together with Stanly W. Alexander and I Gede Suwetja from Sam Ratulangi University, and published in 2026 in the Formosa Journal of Applied Sciences. The study highlights how Bank Maluku Malut manages working capital credit financing from planning and distribution to supervision amid regional economic conditions that are highly dependent on seasonal sectors such as agriculture and fisheries. As a result, the ratio of non-performing loans (NPLs) was recorded at 3.2 percent, which is still safely below the maximum limit of 5 percent set by the Financial Services Authority (OJK).

Why working capital credit matters for regional economies

Banks occupy a strategic position in Indonesia’s economic system. They collect public funds and redistribute them through credit to households and businesses. For regional development banks such as Bank Maluku Malut, this role extends beyond profitability to include supporting local economic growth and stability.

Working capital credit is especially important for MSMEs, farmers, fishers, and traders who rely on short-term financing to run daily operations, purchase raw materials, and pay workers. In regions like West Halmahera, where agriculture, fisheries, and trade dominate, access to working capital often determines whether businesses can survive seasonal fluctuations.

At the same time, working capital lending carries risks. Poor credit analysis, weak supervision, or low financial literacy among borrowers can lead to non-performing loans (NPLs). Regulators such as Indonesia’s Financial Services Authority (OJK) therefore require banks to apply prudent credit management to keep NPL ratios below 5 percent.

Inside the research approach

The Universitas Sam Ratulangi team applied a descriptive qualitative approach to capture how credit management works in practice. Data were gathered through direct observation of bank operations, in-depth interviews with branch leaders, administrative staff, and credit officers, and a review of internal reports and financial records.

Rather than focusing on complex models, the analysis traced the full credit cycle: planning, implementation, supervision, and evaluation. This approach allowed the researchers to assess not only outcomes, such as loan performance, but also day-to-day processes that influence credit quality.

Key findings from Bank Maluku Malut Jailolo Branch

The study shows that Bank Maluku Malut’s working capital credit management has generally been effective and disciplined. Several indicators stand out:

• In 2023, the bank disbursed Rp 45.7 billion in working capital loans to 184 active borrowers, most of them local MSMEs.
• The Non-Performing Loan (NPL) ratio stood at 3.2 percent, well below the OJK safety threshold of 5 percent.
• Compliance with internal credit standard operating procedures (SOPs) reached 95 percent, based on internal audits.
• About 70 percent of working capital loans were allocated to MSMEs, reflecting the bank’s development-oriented mandate.

Credit distribution focused mainly on productive sectors such as trade (43 percent) and agriculture (28 percent), aligning lending with regional economic potential.

Implications for regional banks and policymakers

The findings carry practical lessons for other regional development banks in Indonesia. Effective working capital credit management does not rely solely on collateral, but on consistent planning, close supervision, borrower education, and adaptive strategies that reflect local economic realities.

For policymakers, the study reinforces the importance of supporting financial literacy programs and digital transformation in regional banking. Stronger collaboration between banks, local governments, and regulators can further improve access to finance while keeping credit risks under control.

Author profile

Shindi Arklaudia Dansa, S.E., is a researcher affiliated with Sam Ratulangi University.

specializing: banking and financial management.

Stanly W. Alexander, S.E., M.Si., and I Gede Suwetja, S.E., M.M., both lecturers at Sam Ratulangi University.
with expertise: finance, accounting, and banking management.