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July 02, 2025

Mandala Finance Targets Increased Financing through Working Capital Relaxation from OJK

KONTAN.CO.ID - JAKARTA. The Financial Services Authority (OJK) is opening up more space for the financing industry to strengthen its contribution to the productive sector.

Through OJK Regulation (POJK) No. 46 of 2024 which will be effective from March 1, 2025, multifinance companies are now permitted to distribute working capital financing up to an upper limit of IDR 10 billion per debtor, as long as they meet certain requirements.

Finance Director of PT Mandala Multifinance Tbk (Mandala Finance), Roberto A.K. Un, welcomed the policy. According to him, larger working capital facilities will encourage flexibility in distributing financing to the productive sector.

"We see that public interest in working capital financing facilities of up to IDR 10 billion is quite positive. This provides more space to support financing for the MSME sector," Roberto told Kontan, Wednesday (2/7).

Currently, Mandala Finance's portfolio is still dominated by consumer financing, such as purchasing new and used motorbikes, as well as multipurpose financing. However, some of the multipurpose financing is also used as working capital by MSME players.

Until the end of May 2025, Mandala recorded financing growth of around 4% year-on-year. The company hopes that this new OJK policy can drive higher performance in the remainder of the current year.

"We hope that this policy can boost financing distribution, including working capital which is currently on average proposed in the range of IDR 30 million per debtor. This is in line with our target until the third quarter of 2025 and the projected growth of the financing industry of 7-8% this year," said Roberto.

However, Roberto did not deny that the implementation of this policy faces its own challenges. Some of them are high collateral requirements and a strict debtor feasibility analysis process.

"There are still obstacles such as fairly large collateral requirements and a feasibility analysis process through credit and cash flow checks. This is often an obstacle for micro businesses that do not yet have adequate financial reports or collateral assets," he concluded.