Sales Of Increased Cars, Adira Finance Notes New Financing Up 22 Percent

Illustration of Adira Finance (Photo: Doc. Antara)

JAKARTA - PT Adira's Multi Finance Tbk (ADMF) recorded an increase in new financing of up to 22 percent to IDR 31.7 trillion in 2022.

President Director of PT Adira's Multi Finance Tbk (Adira Finance) I Dewa Made Susila stated that this achievement was influenced by an increase in sales of the new car industry by 17 percent or 1 million units driven by an extension of the validity period of the Sales Tax on Luxury Goods (PPnBM) incentives.

In addition, he continued, the improving business climate is considering the social restriction policy has been lifted in the second quarter of 2022.

This increase caused a growth in receivables of 10 percent. This is the first growth since 2020, because in 2020 we have dropped, 2021 is the same, only then can we reverse growth in 2022," he said, quoting Antara.

Given that the growth of receivables has increased and there is a good asset quality, continued I Dewa Made Susila, the company received a net profit of IDR 1.6 trillion or 32 percent compared to last year. The profit receipt was mainly due to a decrease in interest costs and credit costs throughout 2022.

Interest expenses decreased by 34 percent year on year (yoy) to IDR 729 billion due to a decrease in the number of loans and funding costs. Likewise, recorded credit costs decreased by 35 percent yoy to IDR 907 billion.

NPL (Non-Performing Loans) also improved to 1.7 percent from 2.3 percent last year. Thank you for the conducive economic conditions, people have worked, mobility is good, commodity numbers have increased," said I Dewa Made.

On this occasion, he told the beginning of Adira Finance's journey in 2022 to deal with the COVID-19 pandemic and was accompanied by a social restriction policy, thus affecting economic activity that greatly weakens his company.

After the pandemic is getting more and more resolved, the disruption of the supply of new vehicles is another challenge from Adira Finance. He said, for the first time his party experienced a new vehicle disruption which at that time occurred in the second quarter of 2022.

"This objection, both motorbikes and cars, is caused by a shortage of chips due to many factors that influence it, one of which is geopolitical situations, supply-chain disruption, and many other things," he said.

However, the gradual improvement in economic conditions in the second quarter of 2022 which was influenced by the opening of social restrictions created normalization of economic activity, thereby increasing consumption.

Good export performance considering commodity prices is very high and the increase in investment rates, especially in the mining sector, is also two additional factors why the Indonesian economy improves.

All of that made the Indonesian economy grow 5.31 percent. The figure is higher than other countries that experienced a slowdown in growth," he said.