KONTAN.CO.ID - JAKARTA. The trend of Bank Indonesia's (BI) benchmark interest rate is still at a constant level since the beginning of 2023, namely 5.75%. Of course, this also affects the movement of the net interest margin (NIM) of finance companies or multi-finance companies.

PT BNI Multifinance or BNI Finance, for example, stated that the company's NIM has tended to increase since the beginning of the year. However, this is due to the diversification of funding sources originating from large creditors received since the first quarter of 2023.

"BNI Multifinance NIM as of June 23 was recorded at 3.25%," said BNI Multifinance Legendariah Rasuanto Chief Financial Officer to Kontan.co.id, Monday (28/8).

Ria explained, with support from the parent company, namely PT Bank Negara Indonesia Tbk (BNI), BNI Multifinance was able to save costs of funds (COF) and provide a more competitive selling rate to prospective debtors.

"In 2023, BNI Multifinance has not made interest increases to debtors. This is considering the position of BNI Multifinance which has just entered the consumer finance market through 17 newly established branches," he explained.

He said BNI Multifinance's main target market is new car financing, so competitive pricing is needed to increase market share.

"BNI Multifinance NIM until the end of the year is expected to remain in the current range. This is because our main creditors have a low COF and can provide competitive interest rates on funds," he said.

PT CIMB Niaga Auto Finance (CNAF) recorded a NIM of 11.47% until July 2023. This achievement was driven by new financing that had been realized of IDR 4.5 trillion.

"Until the end of the year (2023) CNAF projects NIM at 11.6%," said CNAF President Director Ristiawan Suherman to Kontan.

Ristiawan revealed, CNAF's strategy to achieve the NIM target was by prioritizing cheap funding sources in order to be able to compete with the market in terms of interest and reduce the average COF.

"COF in July 2023 reached 6.26%, down 39 bps from 6.65%," he said.

Ristiawan said, in terms of funding, CNAF issued Sukuk Wakalah Bil Al Istitsmar of IDR 1 trillion which was issued in February 2023 and received a fairly low margin of 6.25%.

"CNAF also received substantial funding support from the parent company in joint financing and also executing loans," he said.

Meanwhile, PT Adira Dinamika Multi Finance (Adira Finance) posted a NIM position as of June 2023 of around 14%.

Adira Finance's Chief Financial Officer, Sylvanus Gani Mendrofa, said that a change in the BI reference rate could have an impact on funding costs in multi-finance companies, so that it could affect NIM.

"In addition, lending rates are also one of the factors that affect the company's NIM," added Gani.

Gani stated that in determining lending rates, Adira Finance pays attention to several factors, including market competition, banking credit liquidity, and capital market conditions and credit risk. Adira Finance has also carried out several strategies, one of which is by continuing to diversify funding sources.

"Through co-financing with parent Bank Danamon, bank loans (offshore and onshore), as well as issuance of bonds and sukuk, we can obtain more competitive funding," he said.