Executive Summary

Key insights and market outlook

Indonesia's multifinance industry experienced 0.68% annual growth in November 2025, with total financing receivables reaching Rp 505.3 trillion ²

. The Financial Services Authority (OJK) reported that the top five sectors for financing were: trade (Rp 90.88 trillion), rental activities (Rp 55.70 trillion), manufacturing (Rp 52.81 trillion), other services (Rp 46.20 trillion), and mining/quarrying (Rp 43.81 trillion) ¹. Industry experts attribute the slow growth to the sluggish automotive market, prompting multifinance companies to diversify into other sectors including multipurpose financing, working capital, and investments.

Full Analysis

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Deep Dive Analysis

Indonesia's Multifinance Sector Shows Slow Growth Amid Diversification Efforts

Current Industry Performance

Indonesia's multifinance industry recorded Rp 505.3 trillion in financing receivables as of November 2025, representing a 0.68% annual growth rate ²

. This slow growth reflects the industry's ongoing challenges, particularly in its traditional stronghold - the automotive sector. The Financial Services Authority (OJK) reported that the total multifinance receivables reached Rp 505.3 trillion by October 2025 ¹.

Sectoral Distribution of Financing

The OJK data reveals that the top five sectors receiving multifinance funding were:

Trade sector: Rp 90.88 trillion (17.07% share)
Rental activities: Rp 55.70 trillion (10.46% share)
Manufacturing industry: Rp 52.81 trillion (9.92% share)
Other services: Rp 46.20 trillion (8.68% share)
Mining and quarrying: Rp 43.81 trillion (8.23% share)

These figures indicate a diversification beyond the traditional automotive sector, with trade emerging as the largest recipient of multifinance funding ¹

.

Challenges and Industry Response

Industry expert Jodjana Jody attributes the slow growth to the sluggish automotive market, which has been a traditional mainstay for multifinance companies ²

. In response to this challenge, multifinance firms are diversifying their portfolios to include:

Multipurpose financing
Working capital financing
Investment financing

This strategic shift aims to mitigate the impact of the weak automotive market and tap into other growth opportunities.

Future Outlook

The multifinance industry's ability to adapt to changing market conditions will be crucial in determining its future growth trajectory. While the current growth rate is modest, the diversification efforts underway could potentially unlock new avenues for expansion.

References