APPI Explains Reliance on Debt Collectors Amidst Rising Financing Risks

The Chairman of the Indonesian Financing Companies Association (APPI), Suwandi Wiratno, has spoken out about the predicament facing multifinance companies, which are often seen as partners when financing is approved but become enemies during asset repossession. He explained that these companies also have debts to banks, making it understandable that they use debt collector services to aid recovery when financing defaults occur, including through asset seizure. “If we send debt collectors, it is an action to enable recovery. But we also urge them not to overstep the boundaries,” he stated at the Multifinance CEO Gathering with OJK in Senayan on Tuesday (11/8/2026). Suwandi detailed that the debt collectors’ task is solely to collect payments and persuade debtors to visit the financing company’s office for execution. He noted that while this sounds simple, the reality is often not, especially if third parties become involved. “In the landscape of problems, risks are always changing, so we must be increasingly careful,” he concluded. Deputy Commissioner for Supervision of Financing Institutions, Venture Capital, Microfinance Institutions, and Other Financial Services Institutions at OJK, Jasmi, previously stated that multifinance companies face significant challenges in maintaining financing quality amidst pressure on debtors’ repayment capabilities. He assessed that this condition requires attention to ensure financing growth remains healthy and sustainable, particularly as the non-performing financing (NPF) ratio must be kept at a healthy level.