OJK Optimistic That Financing Companies Receivables Can Grow 15 Percent In 2023

Illustration. (Photo: Doc. Antara)

JAKARTA - The Chief Executive of Insurance Supervisory, Guarantee Institutions, and OJK Pension Funds Ogi Prastomiyono is optimistic that the distribution of receivables from finance companies will grow beyond the target of 15 percent on an annual basis in 2023.

financing receivables grew to IDR 441.23 trillion in May 2023 from IDR 379.11 trillion as of May 2022 or grew by 16.38 percent on an annual basis.

"By considering the realization of financing until May, OJK assesses that the financing receivable growth target of 15 percent for 2023 is still quite realistic," Ogi said at the OJK Monthly Board of Commissioners (RDKB) Press Conference in Jakarta, quoted from Antara, Wednesday, July 5.

The growth in financing receivables is contributed by the distribution of financing in the productive sector, both investment financing and working capital financing.

Investment financing receivables increased from IDR 126.90 trillion as of May 2022 to IDR 149.17 trillion as of May 2023 or 17.55 percent on an annual basis, while working capital financing receivables grew by 37.65 percent on an annual basis from IDR 31.03 trillion to IDR 42.71 trillion as of May 2023.

The growth of financing receivables in the productive sector is caused by several factors, including commodity prices which are still quite high which cause positive developments in the mining and plantation sectors and development carried out by the government in the infrastructure sector.

"In addition, the provisions of the OJK Regulation which require finance companies to channel financing to the productive sector are at least 10 percent of the total financing receivables by the end of 2023, which also causes growth in financing receivables," he said.

Multipurpose financing receivables in the consumptive sector, especially in automotive financing and heavy equipment financing, also grew by 11.44 percent from Rp204.52 trillion as of May 2022 to Rp227.92 trillion as of May 2023.

Sharia financing receivables also increased from IDR 16.23 trillion to IDR 20.94 trillion or grew by 28.99 percent on an annual basis.

"This receivable growth is a positive impact after the end of the COVID-19 pandemic which has pushed people's mobility back to normal and economic conditions have recovered," he said.

For the second semester of 2023, Ogi estimates that financing growth will weaken slightly due to the status of the COVID-19 pandemic which ended, the Financing Company is more alert to changes in customer risk profiles, especially those with fixed income which previously set aside transportation costs to save.

According to him, the NPF could move slightly up but it is still concluded that the risk of financing is still quite under control.

"Meanwhile, the conditions and projections for national economic growth are positive, and of course there are still financing opportunities that can be used to encourage financing, especially for certain areas, such as Sulawesi, North Maluku, and parts of Kalimantan," he said.