Indonesian Multifinance Companies Experience Surge in Cash Financing Demand

Rising Demand for Year-End Celebrations

As the year 2025 comes to a close, Indonesian multifinance companies are witnessing a significant increase in demand for cash financing products. PT Wahana Ottomitra Multiartha Tbk. (WOMF), known as WOM Finance, has seen a notable surge in its multiguna financing products, MotorKu and MobilKu. According to Cincin Lisa Hadi, Director of Finance at WOM Finance, the company has recorded over Rp4 trillion in multiguna financing through these products by November 2025. This growth is attributed to consumers using these funds for various needs, including household expenses, education, healthcare, and notably, year-end celebrations and vacations.

Maintaining Asset Quality Amid Growing Demand

To manage the increasing demand while maintaining asset quality, WOM Finance has implemented several risk management strategies. The company has strengthened its credit scoring process, enhanced debtor feasibility analysis, and conducted continuous portfolio monitoring. Additionally, WOM Finance has optimized its collection processes and early warning systems to keep credit risk under control. As a result, the non-performing financing (NPF) ratio for MotorKu and MobilKu stood at 1.03% as of November 2025, indicating robust credit management.

Positive Outlook for Cash Financing

Cincin Lisa Hadi expressed optimism about the prospects for cash financing through to the end of 2025 and into early 2026, citing sustained high consumer demand. Similarly, PT Clipan Finance Indonesia Tbk (CFIN), or Clipan Finance, has observed a rise in demand for cash financing as the year-end approaches. Harjanto Tjitohardjojo, President Director of Clipan Finance, noted that this increase is primarily driven by consumers' need to cover seasonal expenses such as holiday travel, religious festivities, school fees, and home renovations.

Strong Performance and Risk Management

Clipan Finance has reported that cash financing has contributed nearly 10% to their total new financing portfolio by the third quarter of 2025. The company's NPF ratio for cash financing remained below 1% as of November 2025, demonstrating effective risk management. To maintain the quality of their cash financing portfolio, Clipan Finance has focused on customer segmentation based on their Risk Acceptance Criteria (RAC) and optimized their credit scoring system to assess the creditworthiness of potential borrowers. The company remains optimistic about the prospects for cash financing distribution through to the end of 2025 and beyond, supported by increasing demand, continued national economic recovery, and more focused marketing strategies.