Four Types of Debtors in the Automotive Finance Industry
Four Types of Debtors in the Automotive Finance Industry
- Raden Jihad Akbar/VIVA.
Jakarta, VIVA – The finance industry, particularly in the automotive sector, faces significant challenges in maintaining low levels of non-performing financing (NPF). One of the key aspects is understanding the various types of debtors in this financing segment.
The Supervisory Board of the Indonesian Finance Company Association (APPI), Gusti Wira Susanto, revealed that there are essentially four types of debtors in the automotive finance industry.
“Firstly, there are customers who are willing and able to pay their installments. This category accounts for approximately 90% of the company’s debtors,” he said at a seminar on Addressing the Complexity of High Levels of Bad Credit and Debt Collection Challenges in Jakarta, Thursday, February 26, 2026.
Secondly, there are those who have good intentions to pay but are experiencing temporary difficulties due to certain circumstances, such as urgent family needs or a decrease in income.
In response to this type of debtor, finance companies generally provide various solutions, ranging from restructuring to tenor adjustments, due to the debtor’s good intentions.
“It’s better not to sell the car or use it as collateral. There are many solutions, such as restructuring or extending the tenor to reduce the installment amount. So, if you have financial problems, come to the finance company, discuss the problem, and find a solution,” he added.
The third type of debtor is those who are able to pay but unwilling to do so. Many debtors of this type are considered to have bad intentions.
The last type of debtor is those who are unwilling and unable to pay their installments. They usually sell the vehicle while it is still under financing. This practice of selling vehicles with only the registration certificate (“STNK only”) and without the vehicle ownership certificate (“BPKB”) can potentially lead to criminal consequences for both the seller and the buyer.
Gusti believes that the complexity of the problems with the fourth type of debtor has increased since the Constitutional Court (MK) issued a ruling in 2019, which reinterpreted the provisions on execution in Law Number 42 of 1999 concerning Fiducia. This interpretation introduced the requirement for the debtor’s consent and opened the possibility of having to go through the courts in certain conditions.
In practice, this interpretation has created tension between legal norms and the reality on the ground, because execution is essentially a coercive measure that is carried out when voluntary compliance is not achieved. According to him, this situation has been exploited by various parties, including members of social organizations that claim to protect defaulting debtors, and has encouraged the proliferation of problematic vehicle sales practices.