OJK: Multifinance Loans at the End of 2026 Remain Positive Even Though They Bias to the Bottom

Head of the Executive of the Financial Institution Supervisory Board, Venture Capital Company, Micro Finance Institution and Other Financial Services Institution (PVML) of the Financial Services Authority (OJK) Agusman (right). (Dok-OJK-aa)

JAKARTA - The Financial Services Authority (OJK) believes that financing receivables by financing companies or multifinance by the end of 2026 will still grow positively, but biased downwards from the projection target of 6-8 percent.

Meanwhile, in June 2026, financing receivables grew by 1.88 percent year on year (yoy) to Rp511.26 trillion.

"Achievement of the financing growth target by financing companies is supported, among others, through the expansion or diversification of financing and strengthening partnerships," said the Chief Executive of the Supervisory Board of Financing Institutions, Ventura Capital Company, Micro Finance Institutions, and Other Financial Services Institutions (PVML) OJK Agusman in a written answer in Jakarta, Friday as reported by Antara.

Agusman added that OJK had issued POJK Number 35 of 2025 as an improvement on POJK Number 46 of 2024 which contained various deregulation to support industry growth, including the provision of motor vehicle down payments of up to 0 percent for financing companies that meet certain criteria.

Then, the reduction of the core capital ratio requirement to the paid-up capital from 150 percent to 50 percent for business capital facilities and fund facilities; and exemption from collateral obligations for working capital financing for MSMEs up to IDR 100 million per debtor with certain requirements.

In terms of profitability, the financing industry as of June 2026 recorded a profit of IDR 12.75 trillion or grew 15.72 percent (yoy).

Agusman said that this growth was supported by, among others, operational efficiency as well as financing and risk management performance that remained maintained.

Regarding the impact of a 100 basis point (bps) increase in the benchmark interest rate on the future profit of the financing industry, he said that the increase in interest rates could potentially suppress the industry's profitability, especially on financing with a floating rate scheme.

"To maintain performance until the end of the year, companies need to strengthen risk management, governance, and the application of the principle of prudence," said Agusman.

In terms of financing quality, he revealed that the number of financing companies with non-performing financing (NPF) gross above 5 percent decreased to 38 companies in June 2026 from the previous 42 companies in May 2026.

Meanwhile, the number of financing companies with NPFnet above 5 percent decreased to 4 companies in June 2026 from the previous 5 companies in May 2026.

"OJK continues to monitor the implementation of the action plan submitted by the company. Based on the results of supervision, a number of companies have shown improvements in the quality of financing, reflected, among others, by a decrease in the NPF ratio," said Agusman.