OJK: Multifinance Industry Can Grow 8% in 2026

The Financial Services Authority (OJK) is optimistic that the multifinance industry is on track to achieve its target of 6-8% growth in financing receivables throughout 2026. This confidence is supported by the positive growth trend maintained into the first quarter of the year. Agusman, Chief Executive of the OJK’s supervisory body for financing institutions, venture capital, microfinance, and other financial services, stated that as of April 2026, the industry’s financing receivables grew by 2.08% year-on-year. “We are confident, with the support of all industry players, that the 6-8% growth outlook for financing receivables we set at the beginning of 2026 is, God willing, still on track,” Agusman said during the Mid-Year Economic Outlook 2026 event in Jakarta on Friday (26/1). To meet this target, the multifinance industry is expected to need to realise approximately Rp30 trillion in additional financing by the end of the year. As of April 2026, total new financing disbursed reached around Rp9 trillion, bringing the industry’s total financing receivables to Rp514.65 trillion. This growth was primarily supported by working capital financing, which increased by 10.6% compared to the same period last year. In terms of distribution, the wholesale and retail trade sector remained the largest recipient of financing, with a value of Rp90 trillion, accounting for approximately 17% of the total portfolio. The leasing sector followed with a financing value of Rp58 trillion. Agusman also highlighted the high growth in household sector financing, which surged by approximately 28% year-on-year to Rp43 trillion. “What is surprising is that the household sector is the one growing remarkably, around 28% year-on-year,” he noted. Furthermore, OJK sees increasing growth opportunities in sustainable financing, including electric vehicle financing, which rose by 32% to Rp23 trillion. To maintain the industry’s growth momentum, OJK has issued several deregulatory policies, including providing flexibility for zero down payments on motor vehicles for qualifying finance companies. The authority has also removed collateral requirements for working capital financing for MSMEs with financing values up to Rp100 million. Additionally, the core capital to paid-up capital ratio requirement for finance companies has been lowered to 50% from the previous 150%. “All these deregulations are intended not only to boost multifinance businesses but also to provide the best services for the public in need of financing,” Agusman stated. From a fundamental perspective, the industry’s condition is considered healthy. As of April 2026, total assets of finance companies reached Rp593 trillion, with a gearing ratio of 2.14 times, well below the maximum limit of 10 times. Meanwhile, financing quality remains maintained, with a gross Non-Performing Financing (NPF) ratio of 2.89%, providing room for the multifinance industry to continue growing while supporting real sector financing throughout the year.