Bisnis.com, JAKARTA— The Financial Services Authority (OJK) predicts multifinance financing receivables in semester II/2023 will slow down. Even though financing receivables grew 16.38 percent yoy to IDR 441.23 trillion from IDR 379.11 trillion as of May 2022.

Related to this, PT Adira Dinamika Multi Finance (Adira Finance) said that the regulator's prediction was justified. According to the Chief Financial Officer of Adira Finance, Sylvanus Gani Mendrofa, multifinance financing receivables may slow down, but not decrease.

"My term is not decreasing, but the level of acceleration will be more moderate," Gani told Bisnis, Tuesday (11/7/2023).

The acceleration is more moderate on the grounds that the base rate in the first half of last year was relatively lower compared to this year. This is due to many factors such as Russia-Ukraine geopolitics, the Omicron variant Covid-19 and microchip supply difficulties. Then there is also the problem of soaring inflation and benchmark interest rates.

"Thus, when compared to this year's growth in the first semester [January-May] it is very impressive," he said.

Gani believes that the Non Performing Financing (NPF) factor is also one of the things that makes the financing industry players more careful. However, he claims, the increase in NPF is still in a stable range for Adira Finance.

Gani continued that Adira Finance would also do the same to manage risk, with more precise segmentation, selective underwriting, and paying attention to the potential for strengthening certain economic or regional sectors.

"Supposedly we can still record double-digit receivables growth until the end of the year," he said.

Adira Finance disabled, the growth of financing receivables has increased 23 percent for January-June, compared to the same period last year. "Hopefully on a full-year basis, it's still in that range too," said Gani.

On the other hand, President Director of CIMB Niaga Auto Finance (CNAF) Ristiawan Suherman said that in mitigating the possibilities predicted by the OJK, his party always carries out the acquisition process by applying interest rates based on customer risk profiles (risk base pricing).

Thus, he said the company's income was maintained along with a healthy portfolio quality. Apart from that, continued Ristiawan, CNAF is also focused on providing more services to existing customers of Bank CIMB Niaga.

"So that the loyalty of customers who have more than one banking product can still be maintained properly," said Ristiawan when contacted by Bisnis, Tuesday (11/7/2023).

OJK Predictions Regarding Financing Receivables

Previously, Chief Executive for Supervision of Insurance, Underwriting and Pension Funds of OJK Ogi Prastomiyono said that growth in financing receivables for the multi-finance industry in the second semester would slow down and was not expected to be as high as in the first semester of 2023.

According to him, with the end of the Covid-19 pandemic status, finance companies must be aware of changes in the risk profile of customers who are eligible to be financed during a pandemic because a portion of a percentage of income can be saved, for example transportation costs for workers/professionals.

"This situation directly or indirectly affects the delinquency rate of customers who have this fixed income," said Ogi.

He said the NPF could move up slightly but it was concluded that the financing risk was still quite under control. Based on data from the Finance Company's Monthly Report, financing receivables grew to IDR 441.23 trillion from IDR 379.11 trillion as of May 2022 or grew by 16.38 percent yoy or grew by 6.10 percent ytd.

Taking into account the realization of financing up to May, OJK considers that the growth target for financing receivables of 15 percent for 2023 is still quite realistic.

"The growth in financing receivables was contributed by the distribution of financing in the productive sector, both investment financing and working capital financing," said Ogi.