Multifinance Company Financing Receivables Recorded At IDR 447.03 Trillion In July 2023

Illustration. (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) noted that the growth in financing receivables was still at a high level of 16.22 percent yoy in July 2023 to IDR 447.03 trillion.

Chief Executive of the Supervision of Financing Institutions, Venture Capital Companies, Micro Financial Institutions and Other Financial Services Institutions OJK Agusman said that the increase was supported by working capital and investment financing, which grew by 28.37 percent yoy and 16.09 percent yoy, respectively.

"The risk profile of Financing Companies is maintained with a non-performing financing (NPF) ratio of 2.69 percent from June 2023 of 2.67 percent," he said at a press conference for the August 2023 RDK which was held virtually, Tuesday, September 5.

Meanwhile, the gearing ratio of finance companies was recorded at 2.24 times or down from June 2023 which was recorded at 2.27 times.

"Far below the maximum limit 10 times," added Agusman.

He further explained that venture capital financing in July 2023 grew by 1.0 percent yoy from June 2023 which was recorded at 0.5 percent yoy with a financing value of IDR 18.12 trillion.

Meanwhile, Agusman continued, in fintech peer to peer (P2P) lending, outstanding financing growth in July 2023 increased to 22.41 percent yoy from June 2023 at 18.86 percent with a nominal value of IDR 55.98 trillion.

"Meanwhile, the aggregated credit risk rate (TWP90) slightly increased to 3.47 percent from June 2023 at 3.29 percent," continued Agusman.

On the other hand, during August 2023, OJK has imposed administrative sanctions on 34 P2P lending fintech operators for violations committed against the applicable OJK Regulation (POJK) or follow-up results of direct examinations.

"The imposition of administrative sanctions consists of 46 impositions of written warning sanctions, 1 written warning, and 10 fines. The OJK continues to encourage the P2P lending industry to grow and develop in a healthy and safe manner so that it can continue to contribute to the Indonesian economy," concluded Agusman.