Mandiri Utama Finance Reports Strong Growth in Cash Financing

Year-End Demand Drives 14% Increase

PT Mandiri Utama Finance (MUF), a subsidiary of PT Bank Mandiri (Persero) Tbk, has seen a significant surge in cash financing demand during November 2025, with disbursements growing by 14% year-on-year. This increase is attributed to heightened consumer needs during the year-end period, particularly for holiday expenses, family needs, and small-scale business capital. The cash financing portfolio now accounts for approximately 18.5% of MUF's total portfolio.

Maintaining Asset Quality Amidst Growth

Despite the rapid growth in cash financing, MUF has maintained a stable non-performing finance (NPF) ratio of 1.44%, demonstrating the company's prudent financing practices and effective risk management. Corporate Secretary & Legal, Elisabeth Lidya Sirait, emphasized that MUF consistently applies cautious financing principles to ensure the quality of its financing portfolio remains robust.

Positive Outlook for Cash Financing

The company remains optimistic about the prospects for cash financing through the end of 2025 and into early 2026. This positive outlook is supported by Indonesia's ongoing economic recovery, coupled with MUF's expanding network and organizational strengthening efforts. Elisabeth highlighted that the growth in cash financing is expected to continue, driven by consumer needs for year-end expenses and preparations for the new year.

Expert Insights on Industry Trends

Bhima Yudhistira, Director of the Center of Economic and Law Studies (Celios), corroborated that the seasonal increase in cash financing is a typical trend during the year-end period. He noted that consumers often require additional funds for holiday travel and initial expenses for the following year, such as home renovations or down payments on vehicles. While the outlook for cash financing remains positive through 2026, Bhima cautioned that multifinance companies must remain vigilant and maintain prudent lending practices to ensure sustainable growth.

Focus on Sustainable Growth

MUF's ability to balance growth with risk management will be crucial in maintaining its financial stability. The company's commitment to careful debtor selection and robust credit assessment processes will be key factors in sustaining the quality of its financing portfolio amidst increasing demand.