Ministry of Industry Warns of Rising Bad Debts in Commercial Vehicle Financing, Here are the Causes
The government is spotlighting various practices in the commercial vehicle sector deemed to potentially disrupt industry stability and the national financing system. Field findings indicate governance gaps that require immediate rectification.
Secretary General of the Ministry of Industry (Kemenperin), Eko S.A. Cahyanto, revealed improper transaction practices. He assessed that this situation cannot be ignored as it risks damaging the overall industrial ecosystem.
“Kemenperin is also paying attention to vehicle transaction practices that do not follow the proper administrative scheme, for example, vehicle sales without BPKB,” said Eko at GIICOMVEC JiExpo Kemayoran on Wednesday (8/4/2026).
Such practices are considered to have serious consequences for the financing sector. The emerging risks affect not only business actors but also the involved financial institutions.
“This impacts the increase in non-performing loan (NPL) risks in the motor vehicle financing sector,” said Eko.
The subsequent effects of this condition are beginning to spread to credit distribution policies. Financing institutions and banks are compelled to be more cautious in disbursing financing.
“This condition, in turn, can affect credit distribution policies by financing institutions and banks,” said Eko.
Adjusting the financing scheme becomes an unavoidable step in responding to these risks. This could directly impact consumers and business actors.
“Among others, through adjustments to down payments, interest rates, or higher financing tenors,” said Eko.
The government sees the need for comprehensive enforcement. This effort requires cross-sector coordination to be effective.
“Therefore, synergy across ministries and institutions is needed to regulate these practices,” said Eko.
In addition to domestic issues, attention is also focused on the proliferation of imported vehicles that do not comply with regulations. This phenomenon is seen as disrupting the national industry balance.
“On the other hand, Kemenperin is also monitoring the widespread circulation of imported trucks, especially in mining areas, that do not undergo type approval homologation processes,” said Eko.
These vehicles are suspected of not meeting the established environmental standards. This is a concern because it directly relates to sustainability issues.
“And suspected of not meeting the Euro 4 emission standards applicable in Indonesia,” said Eko.
The impacts are not only on regulatory aspects but also on healthy business competition. Additionally, the potential for environmental pollution must be anticipated.
“Not only implying non-compliance with regulations but also potentially hindering air pollution control efforts,” said Eko.
The government reaffirms its commitment to taking firm steps against these violations. Supervision will be strengthened to ensure all industry players comply with applicable rules.
“For that, Kemenperin supports firm enforcement actions against these violations, including strengthening oversight of imported vehicles and enforcing obligations to meet technical and environmental standards,” said Eko.