Clipan Finance Raises Concerns Over STNK-Only Vehicle Transactions

Potential Risks to Multifinance Industry

PT Clipan Finance Indonesia Tbk (CFIN), a major player in Indonesia's multifinance sector, has expressed concerns about the increasing prevalence of vehicle transactions conducted using only the Surat Tanda Nomor Kendaraan (STNK) without the Buku Pemilik Kendaraan Bermotor (BPKB). This practice, which has gained traction through social media platforms, poses significant risks to the multifinance industry.

Quality of Financing at Risk

Clipan Finance's CEO, Harjanto Tjitohardjojo, highlighted that transactions without proper ownership documentation could adversely affect the quality of financing and lead to an increase in Non-Performing Financing (NPF). The lack of complete documentation complicates the process of securing collateral, thereby elevating the risk profile of such financing arrangements.

Call for Regulatory Action

To mitigate these risks, Harjanto urged the government to take a firmer stance on regulating this practice. He emphasized the need for stricter oversight and enforcement of existing regulations to prevent potential abuses and protect the integrity of the multifinance industry. By doing so, the authorities can help maintain a healthy financing environment and safeguard against potential financial risks associated with such transactions.