New Car Sales Decline, Multifinance Could Reap From This Sector

Jakarta, CNBC Indonesia — Growth in financing receivables of the multifinance industry remains weak. The Financial Services Authority (OJK) recorded financing receivables of IDR 508.27 trillion, up just 0.78% year on year as of January 2026. One reason is the sluggish domestic automotive industry. Last year, financing for new cars contracted, causing the average growth over the previous three years to fall to 6.8% yoy. Nevertheless, OJK targets multifinance receivables to grow 6-8% this year. Agusman, Executive Director of Supervision of Financing Institutions, Venture Capital Firms, Microfinance Institutions, and Other Financial Services Institutions at OJK, said the working capital financing segment is expected to remain one of the pillars of multifinance growth in 2026, alongside demand for goods/services and business expansion. ‘The projection of 6-8% receivables growth in 2026 is considered realistic, taking into account among other things the industry’s targets and macroeconomic conditions. To achieve this, companies need to optimise the potential of sectors and regions that are prospective while maintaining asset quality and risk management,’ said Agusman in a written statement, cited on Friday (6 March 2026). He explained that as of January 2026, new financing disbursements for the multifinance industry totalled IDR 78.16 trillion, dominated by multiguna with a share of 47.47%. In nominal terms, multiguna reached IDR 37.10 trillion, investments IDR 18.72 trillion, and working capital IDR 17.04 trillion. Meanwhile in automotive financing, a shift in trend occurred. As of January 2026, total financing for four-wheeled vehicles stood at IDR 229.43 trillion. Used four-wheeled vehicles recorded an average growth of 12.75% yoy. Electric vehicles in January 2026 grew 39.13% yoy to IDR 21.05 trillion, driven by rising sales of electric vehicles and expected to remain positive in 2026 alongside the vehicle electrification trend. ‘The stronger growth in used vehicles reflects, among other things, consumer preference for more affordable prices and financing flexibility,’ Agusman said. He added that the automotive market’s improvement in early 2026 is a positive signal for vehicle financing, with a positive growth outlook for 2026. However, OJK also noted contraction dynamics in some companies influenced by market conditions and each company’s business strategy, with movements continuously monitored through up-to-date data.