KONTAN.CO.ID - JAKARTA. Sales of two-wheeled motorcycles in the country were enthusiastic in early 2022. This increase also affected motorcycle financing at finance companies or multi-finance companies, most of which came from vehicle financing.

Based on data from the Indonesian Motorcycle Industry Association (AISI), domestic motorcycle sales throughout January 2022 were recorded at 443,890 units. The sales increased by 14.5% compared to December 2021.

For information, in general, automotive financing contributes about 70% of the total financing of the multi-finance industry. Since 2000, the financing business has grown rapidly with an average annual growth rate (CAGR) of 25%-30%, particularly in motorcycle financing.

For example, PT Adira Dinamika Multi Finance (Adira Finance) which until February 2022, recorded motorcycle financing of Rp 1.76 trillion, an increase of 17% when compared to the same period the previous year, which was Rp. 1.50 trillion.

Harry Latif, Portfolio Director of Adira Finance, explained that this increase was driven by the gradual recovery of economic activity, improvement in people's purchasing power and relatively high commodity prices, which boosted the regional economy.

"The contribution of motorcycle financing until the period of February 2022 was recorded at 39% of the company's total new financing," said Harry to kontan.co.id, Tuesday (16/3).

Meanwhile, as a whole, the company targets new financing growth in 2022 by 15%-25% YoY to Rp 30 trillion - Rp 32 trillion.

In 2022, Harry admitted that Adira Finance will continue to strengthen and increase market share in the automotive business by implementing several other strategic plans.

For example, being more aggressive and competitive in increasing the penetration of the automotive business, both cars and motorcycles. The company provides various attractive sales programs and strengthens good relations with dealers in increasing new financing, developing and enhancing product brand image.

"We also collaborate with various e-commerce or other digital platforms such as Tokopedia, OVO and Blibli for motorcycle financing, expand sales through Keday (Kemitraan Berdaya) to reach market segments in rural and remote areas, as well as support financial inclusion, as well as support green program from the government by financing electric vehicles." said Harry.

On the other hand, Mandiri Utama Finance (MUF) President Director Stanley S. Atmadja admitted that new motorcycle financing at MUF in January 2022 compared to December 2021 decreased by 7.8% per unit. 

"The decrease in the financing unit at MUF occurred due to the increase in the portion of motorcycle sales in cash. Meanwhile, in February 2022, new motorcycle financing at MUF decreased by 13.1% compared to January 2022," said Stanley. Stanley said the financing value of MUF's new motorcycles contributed 12.3% to the value of MUF's financing for the February 2022 YTD period. Meanwhile, the value of motorcycle financing (including used motorcycle financing) and fund facilities (DANANOW)) reached 23 ,1% of MUF financing value. The company targets the new motorcycle financing value for 2022 to reach Rp 1.94 trillion. Meanwhile, the total value of motorcycle financing at MUF, including used motorcycle financing and DANANOW, is Rp 3.45 trillion. In increasing motorcycle financing this year, MUF has implemented a strategy by increasing intensive and extensive cooperation with dealers and showrooms, developing programs that better meet the public's need for motorized vehicles; such as the millennial MUF, the Health Workers Appreciation Program and others. In addition, intensification for offering financing products to customers of Bank Mandiri as well as Bank Syariah Indonesia and improvement and strengthening of information technology for digital channels through MUF Online Auto Show and collaboration with several e-commerce partners.