KONTAN.CO.ID - JAKARTA. Finance or multi-finance companies are one of the industries in the non-bank financial industry sector where many players have fallen. Not without reason, business pressure also affects the capital position of those who do not meet the requirements.

Throughout 2021 alone, there were 15 finance companies whose licenses had to be dropped and their licenses revoked by the OJK. Meanwhile, at the end of the year, the number of finance companies that are still actively running their business activities is 161 players.

It doesn't stop there, in 2022, there are also financing companies whose licenses have been revoked. Based on Kontan.co.id's records, there are 2 multi-finance players whose business licenses have been revoked, namely Inti Artha Multifinance and Intan Baruprana Finance.

"Mostly, in terms of capital, they can't fulfill the provisions, then also the management of governance, which in the end forced the supervisor not to revoke the permit," said the Chief Executive of the OJK IKNB Supervision, Riswinandi in a media gathering, last weekend.

Riswinandi also said that the revocation of the permit was not immediately carried out by OJK, but had been through a warning letter sent by the company. Meanwhile, at this time he also revealed that there are several companies that are in danger of going out of business.

Not mentioning the amount, Riswinandi said that the supervisors had asked these companies to provide business plans to fulfill several conditions, such as capital.

"If the action plan doesn't happen, it's over. We have also been given the opportunity and we are not too strict," he said.

Meanwhile, Riswinandi also revealed that in fact this finance company could still grow. Bearing in mind that OJK has also not implemented a moratorium on this industry, there are still opportunities for players to enliven this industry.

According to him, currently there are several investors who are indeed looking at the financing industry, whether it be acquisitions or making new ones, one of which is fintech lending players. Not without reason, fintech lending players can go up in class by providing financing with the Buy Now Pay Later (BNPL) concept which is currently very popular.

"If fintech lending players enter into financing companies, their fund raising abilities are even better because they can issue MTF or bonds, especially now that fintech lending is regulated that capital cannot come from loans," said Riswinandi.

Chairman of the Indonesian Association of Financing Companies (APPI) Suwandi Wiratno also admitted that fintech lending could enter the financing industry to work on market segments related to BNPL with a fairly large opportunity.

According to him, if these fintech players enter as financing companies, there is room to develop more creative products. Given, in finance companies are also allowed multipurpose financing.

"With large capital, this fintech sees the potential for, for example, debtors who do not pay, can be included in the list of bad credit debtors in the SLIK," added Suwandi.

Apart from all that, Kelvin also believes that in the end the finance companies that survive in this industry are companies that have been proven to be able to get through times of crisis.

"Those who survive are indeed those who have really gone through a period like a pandemic, even if there are new investors, it means that they are interested in this industry with a large population and market power," he concluded.