KONTAN.CO.ID - JAKARTA. PT Mandala Multifinance Tbk (MFIN) stated that it would strengthen the group's financing business in Eastern Indonesia. Meanwhile, Mandala Finance was officially acquired by Mitsubishi UFJ Financial Group (MUFG) and PT Adira Dinamika Multi Finance Tbk (ADMF).
Mandala Finance Managing Director Christel Lasmana said that before joining Adira Finance and MUFG, half of the company's financing portfolio was focused on Eastern Indonesia.
"Thus, Mandala joining MUFG and Adira will also strengthen the group's position in Eastern Indonesia," he said when met after a press conference at the Mandala Finance Building, Central Jakarta, Tuesday (23/4).
Christel said that financing in Eastern Indonesia is still dominated by two-wheeled vehicles. This is in line with its national achievements, namely two-wheelers too.
As for the first quarter of 2024, Mandala Finance noted that two-wheeled vehicle financing, including new, used and refinancing, took up 99% of the total financing distribution. Mandala Finance said the total financing distribution until the first quarter of 2024 reached IDR 1.3 trillion.
Mandala Finance's statement is in line with what was expressed by PT Pemeringkat Efek Indonesia (Pefindo). Head of the Pefindo Economic Research Division, Suhindarto, said that Mandala Finance operates mostly in motorbike financing and does business in Eastern Indonesia. The acquisition by Adira Finance and MUFG will add to MUFG's financing business, which previously owned Adira.
Meanwhile, Christel said that currently the company together with Adira Finance and MUFG are still in the discussion stage to determine business alignment for the future.
"We are currently still focused on the business plan in accordance with the work plan submitted to regulators and shareholders," he said.
Christel also said that Mandala Finance targets financing distribution to grow double digits this year. This figure is projected based on the growth of the financing industry which is estimated to grow 11% -13% in 2024.