Adira Finance Achieves Strong Motorcycle Financing Growth Amid Market Challenges

Robust Performance in Motorcycle Financing

Adira Finance (ADMF) has demonstrated remarkable resilience in the motorcycle financing segment, achieving Rp10.7 trillion in new motorcycle financing by October 2025. This performance represents a significant 23% month-on-month growth, showcasing the company's ability to navigate a stagnant automotive market. The strong growth was primarily driven by the continued demand for scootermatic motorcycles, which accounted for 90% of the company's motorcycle financing portfolio.

Strategic Expansion Beyond Java

Following its merger with Mandala Finance, Adira Finance is strategically expanding its presence beyond Java, particularly targeting regions with low financing penetration but high growth potential. Chief Financial Officer Sylvanus Gani emphasized that this expansion is expected to drive future growth, leveraging the combined network and experience of both companies. The company's heavy equipment financing also showed slight growth, with a portfolio reaching Rp562 billion by September 2025, primarily concentrated in Kalimantan.

Risk Management and Portfolio Quality

Adira Finance maintained a stable non-performing financing (NPF) ratio of 2.0% as of October 2025, showing continuous improvement since June 2025. The company attributes this stability to its segmented financing approach and effective collection processes. For the motorcycle segment specifically, the NPF trend has also shown improvement, reflecting the company's disciplined underwriting practices.

Market Context and Future Outlook

The national motorcycle sales reached 590,362 units in October 2025, marking the highest monthly sales for the year. This sales performance represents a 4.09% increase from September 2025 and a 10.51% year-on-year growth for the first ten months of 2025. Adira Finance plans to maintain its positive momentum through three key strategies: optimizing sales potential through its extensive distribution network, enhancing customer experience, and maintaining disciplined underwriting processes.

Industry Insights

The significant growth in financing receivables in Papua Selatan, reaching 126.49% year-on-year growth to Rp696.54 billion, was primarily driven by heavy equipment financing related to national strategic projects. Industry experts suggest that such regional growth patterns are likely to continue based on local economic activities and investment needs.