Bisnis.com, JAKARTA - The finance industry (multi) will benefit from the recovery of people's purchasing power in the new normal era, as well as the rise of the mainstay sectors that contribute to financing receivables. The end of the 2021 period is estimated to be a 'harvest period' for players, because many conditions support this. Starting from the extension of the luxury tax discount (PPnBM) for several types of new cars until the end of 2021, the easing of Covid-19 cases, to the recovery of commodity prices which boosted heavy equipment loans.

Jodjana Jody, an automotive observer and multi-industry practitioner who once led Auto2000 (2010) and Astra Credit Companies (2015), revealed that for financing new cars, multi-finance will certainly be splashed by the blessings of 'good year to buy' from the consumer side. The reason is, after the PPnBM discount ends, the automotive industry will be 'rocked' by two phenomena. First, a new regulation in the form of PPnBM based on emissions that will affect the best-selling cars. Second, the increase in the value added tax (VAT) rate to 11 percent in April 2022. "So while PPnBM, many [consumers] don't see it until 2021 if they want to buy a car. The proof is that wholesalers in August 2021 have already passed the full year 2020. The rest of the fourth quarter of 2021 will be very crowded and will exceed the [automotive] association's target, " he told Bisnis, Tuesday (5/10/2021). The Association of Indonesian Automotive Industries (Gaikindo) itself admits that the PPnBM discount will bring the projected sales target throughout 2021 to a more optimistic direction. Yohanes Nangoi, General Chairperson of Gaikindo in an internal discussion with the Association of Indonesian Financing Companies (APPI) revealed that the initial wholesales target of 750,000 units throughout 2021 will easily be exceeded due to various supporting factors. "In this new normal era, we are more optimistic, because cars are a necessity. For example, in the past Jakarta-Surabaya were tired of using cars, but now I'm more interested in using cars, especially because toll roads are already good. So, we will work hand in hand with financing company at the end of this period, because more than 70 percent of buyers use credit," he said. Head of the OJK 2B Non-Bank Financial Industry Supervision Department (IKNB) Bambang W Budiawan agreed that the trend of improvement at the end of the year was still possible in order to improve the performance of the industry which had slumped due to the pandemic. Since January-July 2021, the industry's new financing has reached Rp165.6 trillion, better than January-July 2020 which was only Rp157.3 trillion, mainly because the pandemic has made the average monthly distribution only around a dozen trillions, whereas normally it can reach Rp30 trillion. per month. Recently, OJK noted that new financing or new booking multi-finance value has increased to above Rp. 23 trillion per month. Especially, after the start of PPnBM incentives since March 2021. This means, if this average is able to last until the end of the year, the industry's new financing can still exceed the achievement of new financing throughout 2020, which is IDR 250.3 trillion, which incidentally was also helped by the trend of improving performance at the end of the year. The growth in terms of new financing is also expected to be able to suppress the contraction in terms of financing receivables or industry outstanding in general, which as of August 2021 amounted to IDR 358.78 trillion, which is still recorded minus 2.9 percent (year-to-date / ytd) from the end of 2020. "The total outstanding trend is towards a more positive direction, in line with the distribution of consumer and motor vehicle financing whose receivables growth has shown a recovery," said Bambang to Bisnis. As an illustration, specifically for outstanding finance in consumer goods of IDR 258.2 trillion, which is still contracting 1.7 percent (ytd) as of August 2021, there are only three main objects that have positive growth. To be precise, the outstanding used motorcycles amounted to Rp. 17.68 trillion, which rose 6.62 percent (ytd), electronic goods of Rp. 3.53 trillion, which rose by 18.6 percent (ytd), and other consumer goods which increased by Rp. 7.29 trillion. by 67.5 percent (ytd). President Director of PT Akulaku Finance Indonesia Efrinal Sinaga agreed that for finance companies that play in the buy now pay later (BNPL/paylater) scheme, the end of the year period is definitely eagerly awaited. This is because this period is always full of discounts for online shopping enthusiasts on e-commerce platforms, such as those who are familiarly called 12.12, or Harbolnas, 11.11, as well as new year discounts. Paylater providers often participate in blessings during the campaign that takes place on these beautiful dates.

"Moreover, Akulaku's [financing distribution] is always linear, growing in line with sales in the e-commerce industry. Especially for the purchase of new mobile phones, many of which are also needed as a means of supporting business or work," he told Bisnis. For your information, this multi-licensed company is part of the Akulaku group entity ecosystem (PT Akulaku Silvrr Indonesia) which also has an electronic goods marketplace, also named Akulaku. While specifically for two-wheeled vehicles, the Indonesian Motorcycle Industry Association (AISI) is optimistic that it projects that there will be an increase in sales of 17-26 percent (year-on-year/yoy) compared to 2020. Precisely from 3.6 million units to 4.3 million to 4.6 million units. As an illustration, this target is quite realistic because as of August 2021, the realization of sales has reached 3.2 million units, up 32.1 percent (yoy) on an annual basis. "The motorcycle loan portion was above 65 percent in 2019, but dropped to 50 percent in 2020. Now, it has gradually improved to 55 percent, and when the pandemic begins to subside, ATPM will definitely be aggressive in carrying out marketing activities, which is certainly closely related with services with multi-finance and leasing," said AISI Chairman Johannes Loman in an internal discussion with APPI. Finally, for the heavy equipment industry, the Chairman of the Indonesian Heavy Equipment Sole Agents Association (PAABI) Etot Listyono revealed that as of August 2021 sales of heavy equipment had increased 99 percent (yoy) to 8,821 units. "Because last year we were only supported by construction activities, mining was the most sluggish. If this year mining has risen, the increase is 206 percent [ytd] because coal and nickel prices are driven. Activities in activities related to agro and forestry also increase, year-to-date, respectively 54.7 percent and 84 percent," he said.