KONTAN.CO.ID - JAKARTA. The Association of Indonesian Financing Companies (APPI) has spoken out regarding the shrinking profits of the multifinance industry. Based on data from the Financial Services Authority (OJK), the industry's profit was recorded at IDR 18.72 trillion as of October 2024. This value has decreased by 3.55%, compared to the same period the previous year which was IDR 19.41 trillion.

Regarding this, APPI General Chair Suwandi Wiratno said that the shrinking profit was likely triggered by the company's steps to be careful about reserves for non-performing loans or other things. According to him, the minus or plus of the industry's profit is not a barometer or reference in viewing the multifinance industry.

"The most important thing is that multifinance companies are still making a profit," he said when met in the South Jakarta area, Tuesday (4/2).

Furthermore, Suwandi hopes that the multifinance industry can continue to make a profit in the future. He is optimistic that this can be achieved considering that many companies have made improvements, including in terms of managing bad debts.

Meanwhile, Suwandi projects the growth of receivables of financing companies by 7%-8% in 2025. The figure is still the same as the projection for 2024. He did not deny that the growth projection in 2025 also took into account market conditions that have not recovered as quickly as possible. Plus there are various challenges that will hit the industry this year.

"The projection is expected to be 7%-8%. I don't dare to take a very high range," said Suwandi.