Again and again we hear that non-performing loans at stateowned banks are like time bombs. The issue of state banks' non-performing loans, of which Rp189.69 trillion has already been transferred to the Indonesian Bank Restructuring Agency (IBRA), is being intensely debated again. This comes in the wake of the canceled extension of the shareholders' liability settlement (PKPS), and the prospect of negligent debtors facing heavy legal sanctions.