OJK Calls 4 RI Financing Companies Interested In East Asia

Rupiah (Photo: Antara)

JAKARTA - The Financial Services Authority (OJK) stated that foreign investors from East Asia showed a fairly good interest in financing companies in Indonesia.

"Currently there are four finance companies that have reported the realization of foreign acquisitions," said OJK Chief Executive of Financing Institutions, Ventura Capital Companies, Micro Financial Institutions, and Other Financial Services Institutions (PVML) Agusman.

He said that the foreign investors came from South Korea, Hong Kong, and Japan.

In addition, he continued, there is also one company that is in the process of realizing the acquisition and two other companies that are currently in the process of obtaining acquisition approval.

"The segment of financing companies acquired by foreigners is dominated by the motor vehicle financing sector," said Agusman.

Meanwhile, regarding the performance of Information Technology-Based Joint Funding Services (LPBBTI) or fintech lending, he said that monthly funding distribution increased as of last May.

This also has a positive impact on the increase in LPBBTI's industrial profit which rose 59.45 percent from Rp173.73 billion in April 2024 to Rp277.02 in May 2024.

Even so, his party noted that there are still 15 fintech lending operators who have a pay negligence rate by debtors above 90 days from the maturity date (TWP90) which exceeds the 5 percent threshold according to the OJK stipulation.

"OJK continues to provide guidance and asks the organizers to make an action plan to improve the quality of its funding," said Agusman.

In addition to the TWP90 ratio, he stated that a number of LPBBTI financing and organizing companies were also facing problems in meeting the minimum equity provisions.

He said that until May 2024, there were seven of the 147 financing companies that had not fulfilled their minimum equity obligations of IDR 100 billion and one in 100 LPBBTI organizers who had not fulfilled their minimum liabilities of IDR 2.5 billion.

"This is because, among other things, the implementation of capital injections or the process of increasing capital that is being carried out is not in accordance with applicable regulations," he added.