Bussan Auto Finance Sees Strong Demand for Premium Motorcycles

Positive Growth in New Motorcycle Financing

PT Bussan Auto Finance (BAF), a major player in Indonesia's motorcycle financing sector, has reported positive growth in its new Yamaha motorcycle financing business through October 2025. The company's Managing Director, Alung Ng, stated that the segment remains the mainstay of BAF's operations, contributing over 60% to its overall portfolio.

Premium Segment Leads the Growth

The growth is primarily driven by consumer preference for premium motorcycles, particularly models like Yamaha NMAX Neo. BAF has observed a shift in consumer behavior towards motorcycles with futuristic designs and advanced engine technology at affordable prices. This trend reflects a broader market movement towards more modern and value-for-money products.

Financing Trends and Risk Management

BAF has noticed that consumers are increasingly opting for longer tenor financing options to manage their monthly payments better. Despite this, the company maintains that the quality of its financing portfolio remains healthy. To ensure continued stability, BAF is focusing on enhancing its risk identification processes and underwriting quality. The company is also optimizing its collection processes, combining tele-collection and field collection methods with a particular focus on high-risk consumers.

Challenges and Strategic Responses

The primary challenge for BAF is balancing financing growth with portfolio quality in a dynamic economic environment. To address this, the company is prioritizing quick, easy, and affordable services through strong synergy with official dealerships. BAF is also accelerating its digitalization efforts, improving customer experience, and expanding its branch network to rural areas.

Market Context

The Indonesian motorcycle market has shown positive momentum, with national motorcycle sales growing 4.09% month-on-month in October 2025 to 590,362 units - the highest monthly sales figure for the year. According to Sigit Kumala from the Indonesian Motorcycle Industry Association (AISI), credit purchases accounted for about 60% of total sales, with the credit sales ratio ranging around 63% from January to October 2025.

Outlook

BAF remains optimistic about recording positive growth in new Yamaha motorcycle financing by the end of 2025, supported by solid demand and consistent business strategies. The company's focus on digitalization, customer experience, and network expansion is expected to drive its continued success in the motorcycle financing sector.