Leasing Boss Reveals Impact of Fuel Price Hike: Purchasing Power Declines

The Chairman of Government Relations II at the Indonesian Financing Companies Association (APPI), Ristiawan Suherman, believes that the 9% increase in retail car sales at the beginning of 2026, as compiled by Gaikindo, is a buffer for financing growth amidst uncertainty. Currently, sales of electric vehicles (EVs) continue to rise and dominate compared to fuel-powered vehicles, surging by 67%. However, from the multifinance perspective, the realisation of new four-wheeler credit has actually weakened by -2.5%, falling far below expectations, although total financing overall still grew by 5%. APPI assesses that the pressure on purchasing power, coupled with the depreciation of the Rupiah exchange rate and the increase in fuel prices, is a concern for customers considering taking on new financing.