Multifinance Sector Prepares for Potential NPF Increase by Year-End

NPF Trend Reversal Expected

The Indonesian multifinance industry successfully reduced its Non Performing Financing (NPF) ratio to 2.47% as of October 2025, down from 2.70% in December 2024 ¹

. This improvement demonstrates the sector's ability to manage credit risk during the first three quarters of 2025. However, industry observers are cautioning that this positive trend may reverse in the final quarter.

Factors Contributing to Potential NPF Surge

Industry expert Jodjana Jody suggests that the NPF could rise due to aggressive financing disbursement in December 2025 ²

. This increase is likely driven by vehicle sales promotions and manufacturer pressure on multifinance companies to boost lending ²

Source 2

https://keuangan.kontan.co.id/news/tren-npf-multifinance-berpotensi-naik-pada-akhir-tahun-dipicu-hal-ini

. WOM Finance, a major player in the industry, acknowledges this potential risk and is taking proactive measures.

Risk Mitigation Strategies

Cincin Lisa, Director of Finance at WOM Finance, emphasized that her company will maintain strict credit procedures from initiation to collection to mitigate potential NPF increases ¹

. The company's strategy includes:

1. Enhanced credit assessment during the financing approval process
2. Continuous monitoring of existing loan portfolios
3. Proactive management of potential defaults

Industry Implications

The multifinance sector's ability to manage NPF effectively has been crucial for maintaining financial stability. While the projected increase poses challenges, companies like WOM Finance are better positioned to handle potential risks due to their proactive management strategies.