Mandiri Utama Finance Sees Strong Growth in South Sumatra Financing

Regional Financing Performance Highlights

PT Mandiri Utama Finance (MUF), a leading multifinance company, has reported its strongest financing growth in the South Sumatra region during October 2025. According to Dapot Parasian S. Sinaga, MUF's Director, the growth was primarily driven by new vehicle financing and productive financing for Micro, Small, and Medium Enterprises (MSMEs). The increasing demand in these sectors contributed significantly to the overall growth observed in the region.

Factors Driving Growth

The growth in South Sumatra was mainly attributed to the rising demand for new car financing and productive loans for MSMEs. Dapot explained that while the western region of Indonesia remains the primary contributor to MUF's financing portfolio due to its larger economic base and customer numbers, recent growth has been particularly strong in Central and Eastern Indonesia. This trend is supported by infrastructure projects, increased commercial activity, and rising demand for productive financing in these regions.

Portfolio Composition and Quality

MUF's financing portfolio remains dominated by new vehicle financing, followed by productive financing, sharia financing, and electric vehicle financing, which is currently growing rapidly. Despite the significant growth in financing across various regions, MUF has maintained a controlled non-performing finance (NPF) ratio. Dapot highlighted that regions like Kalimantan, while experiencing rapid growth, have recorded very low NPL (Non-Performing Loan) levels. This is attributed to MUF's prudent risk management practices and effective collection strategies.

Industry Context and Future Plans

The growth observed by MUF aligns with industry trends. According to the Financial Services Authority (OJK), the South Papua province recorded the highest growth in multifinance company receivables in September 2025, with a 126.49% year-on-year growth to Rp696.54 billion, driven by increased financing for heavy equipment. MUF views the high economic activity in Eastern Indonesia as a positive signal for the financing industry. In response to this growth, MUF has opened a new branch office in Jayapura this year as part of its long-term strategy to serve the financing needs in economically growing areas.