WOM Finance Addresses Working Capital Financing Challenges

Navigating Economic Uncertainties

WOM Finance, a leading multifinance company in Indonesia, has revealed the challenges it faces in providing working capital financing. According to Cincin Lisa Hadi, the company's Financial Director, the primary challenges include debtors' cash flow resilience, business dynamics influenced by economic conditions, and sensitivity to interest rate changes and funding costs.

Strategic Response to Challenges

To address these challenges, WOM Finance has adopted a selective financing analysis approach, continuous portfolio monitoring, and measured adjustments to distribution strategies and pricing. This strategic response aims to maintain competitiveness while ensuring healthy financial practices. Despite the challenges, the company remains optimistic about the prospects of working capital financing in 2026.

Positive Outlook for Working Capital Financing

Cincin expressed confidence that working capital financing will remain positive in 2026 due to its relatively stable nature compared to consumer financing. The company anticipates that productive financing, such as working capital loans, will continue to play a crucial role in supporting the growth of the multifinance industry. WOM Finance plans to focus on sectors with clear liquidity needs and stable business cycles, particularly the UMKM (Micro, Small, and Medium Enterprises) sector.

Industry Context and Performance

The Financial Services Authority (OJK) has reported that working capital financing remains a backbone of the multifinance industry's growth. As of October 2025, working capital financing grew by 9.28% year-on-year (YoY), reaching Rp53.19 trillion, or 10.53% of the total multifinance industry's receivables. This growth underscores the importance of working capital financing in the industry.

Future Plans and Targets

WOM Finance has set a target for working capital financing to contribute more than 18% to its total portfolio in 2026. To achieve this target, the company plans to optimize its products according to market needs, strengthen its distribution network, and maintain disciplined risk management to ensure portfolio quality. Currently, working capital financing already accounts for more than 19% of WOM Finance's total portfolio, indicating a strong foundation for achieving the 2026 target.