The decision by Bank Indonesia to raise the BI Rate by 50 basis\npoints to 5.25% during the May 2026 Monetary Policy Committee meeting,\namidst the weakening Rupiah, has drawn significant attention from the\nnational financing industry.<\/p>\n
Iwan Setiawan, President Director of Mega Finance, stated that the\ninterest rate hike necessitates industry vigilance as the policy is\nexpected to have two primary impacts. Firstly, there is a potential\ndecline in demand for new vehicle credit. Secondly, reduced purchasing\npower may strain customers\u2019 ability to make instalment payments,\npotentially driving up Non-Performing Loan (NPL) ratios.<\/p>\n
To navigate this high-interest-rate trend, Mega Finance is focused on\nmaintaining banking confidence to ensure a steady supply of funding.<\/p>\n
Despite current economic and geopolitical volatility, the\nmultifinance business growth is still projected to reach a target of\n6-8%. Consequently, government support is needed to bolster purchasing\npower and stabilise the Rupiah through measures such as incentives.\nFurthermore, policy stability is a key concern, particularly regarding\nthe eradication of \u2018STNK Only\u2019 transactions, which can be detrimental to\nall parties involved.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/leasing-executive-highlights-impact-of-stnk-only-vehicle-trading-practices-1780804882", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }