Indonesian Multifinance Sector Sees Significant Growth in Working Capital Financing

Industry Performance Highlights

The Indonesian multifinance industry has shown robust growth in working capital financing, with a 9.28% year-on-year increase to reach Rp53.19 trillion by October 2025 ³

. This growth is primarily driven by the productive sector, particularly UMKM (Micro, Small, and Medium Enterprises) that are not fully served by traditional banking institutions.

Key Player Performance

Major players in the multifinance sector are actively leveraging working capital financing:

1. Adira Finance (ADMF) reported Rp3.0 trillion in working capital financing by November 2025, contributing approximately 8% to their total portfolio ¹
   Source 1

   https://finansial.bisnis.com/read/20260105/89/1941640/pembiayaan-modal-kerja-adira-admf-rp30-triliun-per-november-2025-sumbang-8-dari-total
   .
2. BFI Finance (BFIN) has dedicated 57% of its portfolio to working capital financing as of September 2025 ³
   Source 3

   https://finansial.bisnis.com/read/20260105/89/1941789/sederet-tantangan-penyaluran-pembiayaan-modal-kerja-dari-multifinance
   .

Industry Challenges and Opportunities

While the growth in working capital financing presents opportunities, industry experts also highlight several challenges:

1. Credit risk management remains crucial due to the nature of UMKM lending
2. Limited financial data on UMKM borrowers creates underwriting challenges
3. Tenor mismatch between long-term business needs and shorter funding sources

Strategic Recommendations

To address these challenges, experts suggest:

1. Implementing cash-flow based lending approaches rather than relying solely on collateral
2. Developing strategic partnerships with guarantee institutions and ecosystem players
3. Focusing on sectors with clear cash flows and integration in value chains

Future Outlook

The multifinance industry is expected to continue its growth trajectory in working capital financing, driven by increasing demand from productive sectors. Companies are likely to focus on enhancing their risk management capabilities through better data utilization and technological innovation.