Multifinance NPF Expected to Rise by End-2025

Industry Maintains Low NPF Ratio Currently

The multifinance industry has successfully maintained a low Non Performing Financing (NPF) ratio of 2.47% as of October 2025, showing improvement from 2.70% in December 2024. This indicates effective risk management by multifinance companies during the initial months of the year.

Expert Warns of Potential NPF Increase

Industry expert Jodjana Jody suggests that despite the current low NPF, there is a likelihood of it rising towards the end of 2025. The primary driver is expected to be the increased financing activities typically seen during this period, coupled with various automotive promotional programs and sales targets set by automotive manufacturers.

Analysis of Potential NPF Rise

Jodjana Jody explained that the flexibility of multifinance companies is generally higher, which could lead to a slight increase in NPF. However, he clarified that the potential rise might not be solely attributed to new financing but could also be influenced by existing loans that have been ongoing for several months or even since the previous year.

Market Implications

The anticipated rise in NPF, while not unexpected, warrants close monitoring by industry stakeholders. It reflects both the growth in financing activities and potential credit risk management challenges that multifinance companies might face during the year's final quarter.