Multifinance Industry’s Bleak Future
Indonesia’s multi-finance industry has been slowing down for quite some time. The head of the Indonesian Finance Services Association (APPI), Suwandi Wiratno, believed the growth of the multi-finance industry would stagnate at 3 percent-3.5 percent at the end of the year. The number comes from the amount of loan disbursement in September, growing only 3.53 percent to Rp 451.11 trillion.
The drops in the car and heavy-machinery vehicle sales allegedly caused the underwhelming level of loan disbursement. However, there is one particular segment that the multi-finance companies can use to decelerate the slowdown: the cash funding. Such type of financing is useful for paying education, home renovation, healthcare, and traveling cost.