Indonesian Financing Industry Grapples with 'STNK Only' Vehicle Transactions

Illegal Practices Cause Financial Strain

The Indonesian financing industry is facing significant challenges due to the increasing prevalence of 'STNK Only' vehicle transactions. These transactions involve the sale of vehicles without the required ownership documents, known as Buku Pemilik Kendaraan Bermotor (BPKB), leaving financing companies with substantial financial risks. The Indonesia Financing Companies Association (APPI) has strongly condemned this practice, labeling it as a serious legal violation.

Industry Response and Regulatory Involvement

APPI Chairman Suwandi Wiratno stated that his organization has reported these illegal transactions to the Financial Services Authority (OJK) and has been engaging in discussions with various stakeholders, including the Ministry of Communication and Digital (Komdigi), to find a solution. The association has also reached out to other relevant bodies such as the Indonesian Police Traffic Corps (Kakorlantas Polri), the Indonesian Automotive Industry Association (Gaikindo), and the Indonesian Automotive Society (AISI).

Financial Implications and Industry Concerns

The 'STNK Only' transactions have not only complicated the operations of financing companies but have also led to a significant financial burden. Chandra Sakti Utama, Director of Chandra Sakti Utama Leasing (CSUL), highlighted that these illegal practices, coupled with the activities of unscrupulous NGOs, have further strained the industry. In some cases, employees of financing companies have been kidnapped by these NGOs during debt collection processes, adding to the operational challenges faced by the industry.

Regulatory Support and Industry Optimism

Agusman, Head of Executive Supervisor for Financing Institutions at OJK, acknowledged the challenges posed by 'STNK Only' transactions but expressed optimism about the industry's resilience. He emphasized that the multifinance industry is a crucial backbone of the financial sector, second only to banking and insurance. Despite the challenges, industry stakeholders remain hopeful for growth and are working collaboratively to address these issues.