The change in the Allowance for Impairment Losses calculation method from FASS 55 to FASS 71 in Indonesia requires banks to consider macroeconomic variables as variables in calculating Allowance for Impairment Losses. This research has an objective to study and analyze the effect of macroeconomic proxied by GDP, inflation, exchange rate, unemployment rate, BI rate, and loan growth on NPL and its implications for Allowance for Impairment Losses. The population of this research was issuers of

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... ign exchange banks in 2011-2019, with a total sample of 26 issuers of foreign exchange banks. This research uses the panel data regression method to analyze the data. The research results found that macroeconomic variables proxied by GDP, inflation, exchange rates, unemployment rate, BI rate, and loan growth did not significantly affect NPL. In contrast, NPL had a significant effect on Allowance for Impairment Losses. This research implies that banks are expected to improve credit quality management against the effects of macroeconomic fluctuations. As a result, the NPL ratio remains under control and does not increase the burden of Allowance for Impairment Losses.