Leasing Executive Highlights Impact of 'STNK Only' Vehicle Trading Practices

The decision by Bank Indonesia to raise the BI Rate by 50 basis points to 5.25% during the May 2026 Monetary Policy Committee meeting, amidst the weakening Rupiah, has drawn significant attention from the national financing industry.

Iwan Setiawan, President Director of Mega Finance, stated that the interest rate hike necessitates industry vigilance as the policy is expected to have two primary impacts. Firstly, there is a potential decline in demand for new vehicle credit. Secondly, reduced purchasing power may strain customers’ ability to make instalment payments, potentially driving up Non-Performing Loan (NPL) ratios.

To navigate this high-interest-rate trend, Mega Finance is focused on maintaining banking confidence to ensure a steady supply of funding.

Despite current economic and geopolitical volatility, the multifinance business growth is still projected to reach a target of 6-8%. Consequently, government support is needed to bolster purchasing power and stabilise the Rupiah through measures such as incentives. Furthermore, policy stability is a key concern, particularly regarding the eradication of ‘STNK Only’ transactions, which can be detrimental to all parties involved.