Mandiri Utama Finance Addresses Rising Vehicle Transactions Without Complete Documentation

Industry Concerns Over Incomplete Vehicle Transactions

The multifinance industry is increasingly concerned about the rising number of vehicle transactions conducted using only the Surat Tanda Nomor Kendaraan (STNK) without the Buku Pemilik Kendaraan Bermotor (BPKB). This practice has raised red flags among multifinance companies due to its potential impact on non-performing financing (NPF) levels.

Mandiri Utama Finance's Response

PT Mandiri Utama Finance (MUF), a prominent player in the multifinance sector, has addressed this growing trend. According to Elisabeth Lidya Sirait, Head of Corporate Secretary & Legal at MUF, the company has taken proactive measures to mitigate the risks associated with such transactions. MUF emphasizes its commitment to maintaining strict financing procedures and thorough document verification processes.

Robust Verification Processes

MUF has highlighted that it adheres to a stringent set of standards and procedures in vehicle financing. This includes the mandatory verification of complete documentation and thorough asset verification. By doing so, MUF ensures that transactions lacking complete documentation, such as those involving only STNK without BPKB, do not directly impact its portfolio.

Implications for the Multifinance Industry

The rise in transactions without complete documentation poses significant risks to the multifinance industry, particularly in terms of increasing NPF levels. Companies like MUF are taking proactive steps to safeguard their portfolios by maintaining rigorous verification processes. This trend underscores the importance of robust risk management practices in the multifinance sector.