Indonesia's multifinance companies could see further growth in financing this year as a new regulation allows the firms to enter new sectors. While the general outlook for multifinance companies in 2015 will not change much from last year, Suwandi Wiratno, the chairman of the Association of Multifinance Companies in Indonesia (APPI), said that the new regulation from the Financial Services Authority (OJK) could give an extra boost to the industry.
"We will survive in 2015. Our hope is to book at least a 5 percent to 10 percent growth compared to 2014," said Suwandi recently. The OJK's new rule allows multifinance companies to offer new forms of financing, such as investment financing and working capital financing.
Ignatius Susatyo Wijoyo, president director of automotive financing firm Mandiri Tunas Finance, said that the new OJK rule could even give an additional 5 percent growth in total financing for the industry.
Multifinance companies in Indonesia experienced a 7 percent to 8 percent growth in financing in 2014, according to Suwandi. Data from Bank Indonesia reported that total financing in the country reached Rp. 364.5 trillion ($29 billion) in the January-October period, up 7.7 percent from the same 10-month period in 2013.
Source: Jakarta Globe, 05 January 2015