Indonesia's Multifinance Sector Sees Rise in NPF Net to 0.84%

Industry Risk Profile Increases

The Financial Services Authority (OJK) has reported a rise in the multifinance industry's Non Performing Financing (NPF) net to 0.84% as of September 2025, up from 0.75% at the end of 2024. This increase indicates a shift in the industry's risk profile, suggesting that some credit risks are still emerging despite existing provisioning measures.

Adira Finance Commentary

PT Adira Dinamika Multi Finance Tbk (Adira Finance), a major player in the multifinance sector, responded to the OJK's data through its Chief Financial Officer, Sylvanus Gani. Gani emphasized that the rising NPF net indicates that some risks remain uncovered by current provisioning. He stressed that this development underscores the importance of maintaining prudent risk management practices across the industry.

Industry Implications

The increase in NPF net to 0.84% reflects the ongoing challenges in the multifinance sector, particularly in managing credit risk. While the figure remains relatively low, the upward trend suggests that industry players need to remain vigilant. The emphasis on prudent risk management is likely to lead to tighter credit assessments and potentially more conservative lending practices in the coming months.