Multifinance Slumps, Loans to Online Lenders and Pawnbrokers Surge

Jakarta, CNBC Indonesia — The Financial Services Authority (OJK) reports that the performance of non-bank financial institutions (LKNB) showed diverse trends in early 2026. The multifinance sector remains subdued, while the pawnbroking and online lending (pindar or pinjol) industries are surging.

The Executive Head of Supervision for Financing, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions at OJK, Agusman, stated that the financing receivables of financing companies only grew 1.01% year-on-year (yoy) to Rp512.14 trillion in February 2026.

“This growth was mainly supported by working capital financing, which grew 8.31% yoy,” Agusman said during the Press Conference on the Financial Services Sector Assessment and OJK Policies from the March 2026 RDKB, on Monday (6/4/2026).

From a risk perspective, the financing profile remains stable with a gross non-performing financing (NPF) ratio of 2.78% and net of 0.81%. Meanwhile, the gearing ratio was recorded at 2.13 times, still well below the maximum limit of 10 times.

However, the limited growth in multifinance contrasts with the performance of other LKNB sectors.

In the online lending (pindar) industry, outstanding financing grew around 25% yoy to Rp106.9 trillion. Nevertheless, the risk level, as reflected by the TWP90, stood at 4.45%.

Meanwhile, the pawnbroking industry recorded a significant surge. Financing disbursements grew 61% yoy to Rp152 trillion, with the majority channelled through pawn products amounting to Rp126 trillion, or about 83.01% of total financing.

On the other hand, venture capital financing was relatively limited, with growth of 0.78% yoy to Rp16.46 trillion.

Overall, OJK data indicates a shift in growth within the non-bank financial institutions sector, with slowdowns in conventional financing companies and acceleration in digital-based sectors and pawnbroking.