Multi-Finance Companies Shifts to Productive Segment

Multi-finance companies are shifting their priorities in response to the slowing down of the automotive industry. They reallocate the passenger vehicle financing or consumptive sector to commercial vehicle loans, working capital funding, and investments of the productive sector.

According to the Financial Services Authority’s data, the consumer credit growth in the first half of 2019 was only 4.29 percent, lower than the initial projection at eight percent. The number is underwhelming since last year’s credit grew up to 10 percent and therefore triggers the companies’ shift of priority. PT BNI Mulitifinance, for example, converts more than half a portion of credit allocation to the productive financing, while PT Mandiri Tunas Finance allocates 33 percent of funding to the commercial vehicle segment.