Bisnis.com, JAKARTA - Multi-finance company part of the Astra Group, PT Federal International Finance (FIF Group) has begun to take square steps over the impact of rising fuel prices on the increase in the ratio of non-performing financing.

FIF President Director Margono Tanuwijaya admitted that the increase in the ratio of non-performing financing (NPF) was a necessity in the midst of the unstable economic condition of the community due to rising fuel prices.

"The impact of the increase in fuel prices is that there will be a spike in bad loans, but we're sure it won't be for all consumers. Consumers who have the potential to get stuck, especially those who have several installments, where during the phase of increasing living needs, there must be installments that are prioritized," he told Bisnis. , Monday (5/9/2022).

However, Margono still believes that FIF debtors who are categorized as substandard due to the increase in fuel prices do not necessarily end up with bad loans, if economic activity is still running smoothly.

Moreover, the motorcycle financing industry is still affected by the phenomenon of vehicle stock scarcity in the early half of 2022, so that existing debtors are those who have the opportunity to prepare for a more stable financial condition.

As an illustration, based on the FIF financial report as of June 2022, the gross NPF ratio from special leasing to facilitate financing products for the new Honda motorcycle is still maintained at the level of 0.99 percent, slightly higher than the gross NPF at the end of last year at the level of 0.7 percent.

Meanwhile, during this period, Margono is also aware of the shift in the consumer segment due to the increase in fuel prices, where the middle class has started to switch to buying cheaper and more fuel efficient motorbikes. In fact, the volume of this type of motor unit is still experiencing limitations.

"In general, in the first semester of 2022, many took the Vario, which incidentally was in the mid-high segment. But not all of those who took Beat were from the middle to lower segment. There are also good debtors, but they prefer to take cheap motorbikes. So it's a risk. not much different," he explained.

Regarding the distribution of new financing, Margono is still optimistic that this year's performance can still be better than last year's total of Rp. 31.83 trillion, where the portion of financing for new motorcycles, alias FIFASTRA products, reached Rp. 21.2 trillion of the total.

Meanwhile, until June 2022, the realization of the distribution of FIF financing penetrates Rp. 15.50 trillion. However, the portion of FIFASTRA worth IDR 9.38 trillion was recorded to be down 7.53 percent on an annual basis (year-on-year / yoy) compared to the June 2021 achievement of IDR 10.15 trillion.

"We believe that demand remains high, because motorbikes are currently needed for work, to support productivity, and transportation needs. But if the segment that takes installments is more towards hobbies or upgrading vehicle types, it might be a little less," he concluded.