OJK says multifinance industry growth remains on track this year

The multifinance or financing industry is still on track to grow 6-8 per cent this year, according to Agusman, Chief Executive of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions Supervision at the Financial Services Authority (OJK). As of April 2026, the OJK recorded that the multifinance industry had experienced financing receivables growth of 2.08 per cent year-on-year. “We are confident, with the support of all multifinance industry players, that the 6-8 per cent financing receivables growth outlook we conveyed earlier at the beginning of 2026 is, God willing, still on track,” Agusman said at the “Mid-Year Economic Outlook 2026” event in Jakarta on Friday. He stated that the multifinance industry needs to realise approximately Rp30 trillion in financing to achieve the growth target. The industry had channelled around Rp9 trillion in financing up to April 2026, with total financing receivables amounting to Rp514.65 trillion, primarily supported by working capital financing which rose 10.6 per cent year-on-year. He explained that the majority of this financing was channelled to the wholesale and retail trade sector, accounting for a 17 per cent share, or Rp90 trillion. The rental or leasing sector followed in second place with a financing value of Rp58 trillion. “What is surprising is that this last sector, the household sector, is the one growing extraordinarily, around 28 per cent year-on-year,” Agusman remarked. He noted that financing for this sector reached Rp43 trillion. Additionally, the OJK sees significant growth potential in the sustainable financing sector, including electric vehicles, which surged 32 per cent to Rp23 trillion. To address future challenges in the financing industry, the OJK has implemented various deregulatory measures, such as allowing motor vehicle down payments as low as zero per cent for multifinance companies meeting certain technical criteria. Other policies include exempting working capital financing collateral requirements for all MSME debtors with a maximum financing value of Rp100 million. The core capital ratio requirement for financing companies against paid-up capital has also been lowered to 50 per cent from 150 per cent. “All these deregulations are intended not only to encourage multifinance businesses but also to provide the best services for people in need of financing,” Agusman said. As of April 2026, total assets of financing companies reached Rp593 trillion with a gearing ratio of 2.14 times, well below the maximum limit of ten times. The industry’s risk profile is also confirmed to be well maintained, with a gross non-performing financing ratio of 2.89 per cent.