Eight Multifinance Companies Under Strict OJK Watch Due to Capital Shortfall

The Financial Services Authority (OJK) has revealed that a number of finance companies, or multifinance firms, have still not met minimum capital requirements, even as the industry’s overall performance continues to show positive growth. Agusman, Chief Executive of the OJK’s Supervisory Board for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions, stated that 8 out of 144 finance companies have core capital below the stipulated minimum threshold. “Regarding capital monitoring, there are 8 out of 144 finance companies that have not met the minimum core capital requirement,” Agusman said during a virtual press conference for the OJK’s Monthly Board of Commissioners Meeting on Tuesday (4/8/2026). He stressed that all non-compliant companies have submitted action plans to the OJK as a step towards fulfilling the minimum capital requirements. In terms of performance, finance company receivables in June 2026 were recorded at Rp511.26 trillion, a 1.88% year-on-year increase, supported by a 6.36% year-on-year rise in working capital. Regarding the risk profile, the gross Non-Performing Financing (NPF) ratio for finance companies stood at 3.01%, while the net NPF was at 0.81%. The gearing ratio for finance companies was 2.14 times, well below the maximum limit of 10 times. Meanwhile, venture capital financing in June 2026 contracted by 0.44% year-on-year to Rp16.48 trillion. As part of its industry strengthening initiatives, the OJK has issued a Board of Commissioners Regulation on the assessment of financing quality for PT Sarana Multi Infrastruktur (SMI), which provides guidelines for assessing financing quality based on three pillars: business aspects, financing aspects, and repayment capacity. The OJK is also drafting amendments to the Draft OJK Regulation on the supervisory status of PVML, which will regulate changes to supervisory intensity parameters and the duration of special supervisory status for companies in the financing, venture capital, and microfinance sectors. In terms of compliance enforcement, the OJK has imposed administrative sanctions on 21 finance companies and 8 venture capital companies for various regulatory violations during the current period.