OJK: Penetration Of Electric Vehicle Financing Increases To 8.2 Percent In Early 2024

Illustration. (Photo: Doc. Antara)

JAKARTA - Chief Executive of the Supervision of Financing Institutions, Ventural Capital Companies, Micro Financial Institutions, and Other Financial Services Institutions (PVML) of the Financial Services Authority (OJK) Agusman said that penetration of electric vehicle financing increased to 8.2 percent in early 2024.

"We also note that sales of electric vehicle loans have indeed shown growth that has begun to strengthen, especially because penetration which increased from 6.9 percent last year has started to 8.2 percent in the first 5 months of 2024," said Agusman in Tangerang Regency, Banten, quoted from Antara, Wednesday, July 17.

In the opening booth of Astra Financial at the GAIKINDO Indonesia International Auto Show (GIIAS) 2024 at ICE BSD City, he said that this achievement is not only a good sign for the electric vehicle ecosystem, but is also expected to support the development of sustainable finance in Indonesia.

"Of course, the positive and optimistic performance of car sales cannot be separated from the important role of the multifinance sector and of course there must also be insurance (to protect newly purchased vehicles)," he said.

Agusman also mentioned that the performance of finance companies as of last May increased by 11.21 percent on an annual basis (year-on-year/yoy), according to the OJK target range, which was between 9-11 percent.

"Of course, if it's more than 11 percent, we'll be more grateful, optimism is hopefully coming to fruition," he said.

He noted that now the total financing in the motor vehicle industry has reached IDR 490 trillion, and about 22 percent of this figure has been donated by Astra Finansial, or IDR 111 trillion.

With the increasing number of exhibition participants from 49 to 55 vehicle brands at the GIIAS event this time, Agusman also hopes that the value of vehicle sales transactions at the event will increase compared to last year.

He said that in this way, the event could improve the performance of the financing, insurance, banking, and Information Technology-Based Joint Funding Service (LPBBTI) or fintech lending sectors.

"And of course it will encourage better economic growth for Indonesia, which is more advanced in the future," he added.

The GIIAS event this time was held in four areas, namely Tangerang, Surabaya, Bandung, and Semarang. GIIAS 2024 which will take place at ICE BSD, Tangerang Regency, Banten, can be visited by the general public from July 18 tomorrow to July 28.