Multifinance Vehicle Credit Slump Pressures Insurance Sector

The Financial Services Authority (OJK) recorded a slowdown in multifinance vehicle financing of 1.44% year-on-year to IDR 402.49 trillion as of May 2026. This decline in multifinance vehicle credit is set to affect the performance of the motor vehicle insurance business. In an effort to maintain insurance growth amid the pressure on multifinance vehicle financing, the industry is being urged to strengthen other sources of growth. These include insuring vehicles already in circulation and expanding distribution channels by leveraging digital technology and social media. The electric vehicle segment also presents a new opportunity for insurers to broaden their premium growth sources.