KONTAN.CO.ID - JAKARTA. Financial Services Authority (OJK) statistics show that multifinance industry profits declined by 7.32% year-on-year (YoY), to IDR 19.36 trillion as of November 2025.

Regarding this, financing industry observer Jodjana Jody believes the decline in multifinance profits was due to the industry's relatively depressed performance. He said the persistently high number of non-performing loans (NPF) and the modest growth in financing disbursement also contributed.

"In addition to resolving NPFs, there is also likely a cost of funds issue, as many multifinance companies still rely on offshore funding," he told Kontan on Wednesday (January 21, 2026).

Therefore, Jody emphasized that multifinance companies need to remain disciplined in implementing their financing distribution strategies, particularly by seeking sectors with positive growth.

"Furthermore, funding diversification is also necessary by paying attention to the cost of funds and continuing to strengthen collection activities to maintain the level of non-performing loans," he said.

Furthermore, Jody projected that there was still opportunity for profit improvement in 2026. He stated that the industry should have addressed various issues from last year that impacted its performance, including the Non-Performing Loan (NPF) rate.

"Therefore, this year should start to improve," Jody said.

Regarding industry performance, the Financial Services Authority (OJK) recorded that multifinance companies' financing receivables reached IDR 506.82 trillion as of November 2025, a 1.09% year-on-year growth.

The gross NPF rate for financing companies as of November 2025 was 2.44%. This figure represents an improvement compared to the previous month's 2.47%.