Multifinance Industry Is Assessed To Be Able To Adapt To Increase Fuel Prices

Illustration. (Photo: Doc. Antara)

JAKARTA - Chairman of the Indonesian Financing Company Association (APPI) Suwandi Wiratno said the financing industry or multi-finance will be able to adapt to rising fuel prices (BBM). "We will adjust. This adjustment will occur naturally, that we face this challenge from time to time, from situation to situation," said Suwandi in a webinar entitled Challenges and Future of Financing Company organized by InfoBank in Jakarta, quoted from Antara, Friday, September 16. He said the financing industry would definitely be affected by demand and supply, however, the various adaptations made will make this industry continue to grow and contribute to the national economy in the future. He said financing companies should start tightening the Debt Service Ratio (DSR), by recalculating the capabilities of each debtor based on their current income. "We, as those who provide credit, must look at the capabilities of debtors we know as sustainable debt," said Suwandi. He continued that financing companies must also recalculate the distribution of financing tailored to the current benchmark interest rate. "The price will be high, the calculation will be back for customers who want to get loans with interest rate adjustments," said Suwandi. He explained that the adjustment to fuel prices and rising interest rates was a situation that had occurred in previous years, and financing companies could always get through this situation positively. "If we borrow back, we have also experienced high interest rates. Where has it been at 15-16 percent, we will adjust it," said Suwandi. On the same occasion, the Head of the OJK 2B IKNB Supervision Department, Bambang W. Budiawan, is optimistic that the financing industry can grow positively amid adjustments to fuel prices. He reflected on the experience in 2005 and 2015 which also had fuel price adjustments, however, the financing industry at that time grew positively. "Perhaps with the adjustment of fuel prices, it will be corrected. But I still feel positive in 2022," said Bambang He also saw a pattern of growth in the financing industry in line with Indonesia's economic growth. It was noted that the receivables of financing companies grew by 7.12 percent year on year (yoy) to Rp384.63 trillion in July 2022, or in line with economic growth which grew by 5.44 percent (yoy).