OJK Highlights Working Capital Financing as Multifinance Growth Driver

Industry Performance Overview

The Financial Services Authority (OJK) has reported that working capital financing continues to be the primary driver of growth in Indonesia's multifinance industry. As of October 2025, working capital financing grew by 9.28% year-on-year to reach Rp53.19 trillion, accounting for 10.53% of total industry receivables. This growth underscores the importance of working capital loans in sustaining the multifinance sector.

Sectoral Distribution of Financing

The OJK's data reveals that the top five sectors receiving multifinance industry funding are:

1. Trade sector: Rp90.88 trillion (17.07% of total receivables)
2. Rental activities: Rp55.70 trillion (10.46%)
3. Manufacturing industry: Rp52.81 trillion (9.92%)
4. Other service activities: Rp46.20 trillion (8.68%)
5. Mining and quarrying: Rp43.81 trillion (8.23%)

These figures demonstrate the diverse application of multifinance industry funding across various sectors of the economy.

Industry-Wide Financial Metrics

The OJK's report also provides key financial metrics for the multifinance industry:

• Total financing receivables: Rp505.30 trillion, representing a 0.68% YoY growth
• Gross Non-Performing Financing (NPF): 2.47%
• Net NPF: 0.83%
• Gearing ratio: 2.15 times

These metrics indicate a stable financial position for the industry, with manageable credit risk and adequate leverage.

Industry Insights and Future Outlook

The growth in working capital financing is attributed to multifinance companies successfully offering existing clients the option to use their vehicle ownership certificates (BPKB) as collateral for working capital loans. Many of these clients are small and medium-sized enterprise (SME) owners who have previously financed vehicles through multifinance companies. By leveraging their existing relationship and assets, these businesses can access additional capital for operational needs.

Industry experts, such as Suwandi Wiratno, Chairman of the Indonesian Multifinance Companies Association (APPI), note that this trend is likely to continue, with potential for double-digit growth in working capital financing by the end of 2025. The ability of multifinance companies to offer innovative financing solutions to their existing client base has been a key factor in this growth.