Multifinance Financing Still Growing Modestly, NPF Edges Up Slightly

Jakarta, CNBC Indonesia — Growth in financing receivables at multifinance companies remained limited up to July 2026. Amid expansion of only around 2% year-on-year (yoy), financing quality has in fact shown a slight increase in risk.

The Financial Services Authority (OJK) recorded financing receivables of financing companies at Rp513.05 trillion in July 2026, growing 2.01% yoy. This represents a marginal increase compared with June 2026, which stood at 1.88% yoy.

Agusman, Executive Head of Supervision for Financing Institutions, Venture Capital Companies, Microfinance Institutions and Other Financial Services Institutions (PVML) at the OJK, said the growth in financing receivables was mainly supported by an increase in working capital financing.

“Financing receivables from financing companies grew 2.01% year on year in July 2026 to Rp513.05 trillion. This was supported chiefly by a 6.32% year-on-year increase in working capital financing,” Agusman said at the OJK Board of Commissioners meeting press conference for August 2026 on Monday (7/9/2026).

However, amid relatively low financing growth, the credit risk of financing companies has risen slightly.

The OJK recorded the gross non-performing financing (NPF) ratio in July 2026 at 3.03%, up from 3.01% in June 2026. Meanwhile, net NPF stood at 0.81%, unchanged from the previous month.

Compared with July 2025, gross NPF also rose from 2.52% to 3.03%. Net NPF, meanwhile, fell from 0.88% to 0.81%, indicating an annual improvement in the net ratio.

Nevertheless, the OJK considers the risk profile of financing companies to remain sound. This is reflected, among other things, in the gearing ratio, which stands at 2.10 times, far below the stipulated maximum of 10 times.

The 2.01% yoy growth of financing companies also lags far behind several other industries in the PVML sector.

In July 2026, outstanding financing in the online lending industry (Pindar) grew 24.76% yoy to Rp105.63 trillion. Meanwhile, financing disbursed by the pawnbroking industry even jumped 50.73% yoy to Rp160.78 trillion.

On the other hand, venture capital financing contracted 0.46% yoy to Rp16.32 trillion. Financing disbursed by Microfinance Institutions (LKM) also contracted 0.40% yoy to Rp1.05 trillion.