OJK Raises Concerns Over 'STNK Only' Vehicle Transactions

Rising Risks in Automotive Financing

The Financial Services Authority (OJK) has sounded the alarm on the growing practice of 'STNK Only' vehicle transactions, where vehicles are sold and bought using only the vehicle's registration certificate (STNK) without transferring the vehicle's ownership certificate (BPKB). This practice is seen as a significant threat to the multifinance industry's stability and asset security.

Regulatory Concerns and Industry Impact

Agusman, OJK's Executive Head for Supervision of Financing Institutions, stated that such transactions potentially increase financing risks, particularly in the automotive sector. The regulator is concerned about the implications for asset security, legal certainty, and overall industry stability. The OJK views these transactions and related practices as serious challenges to the multifinance sector's integrity and financial health.

Market Implications

The 'STNK Only' practice creates uncertainty in vehicle ownership and collateral valuation, potentially leading to increased default risks for multifinance companies. This development may prompt stricter regulations and risk management practices within the industry to mitigate potential losses.