KONTAN.CO.ID - JAKARTA. Sales of electric vehicles in Indonesia show a positive growth trend, a phenomenon that is also felt by BRI Multifinance.
Until June 2024, PT BRI Multifinance Indonesia (BRI Finance) reported growth in distribution of electric vehicle financing of around 53% on an annual basis or year on year (YoY).
Positive Growth in Electric Vehicle Financing
President Director of BRI Finance, Wahyudi Darmawan, revealed that this growth was in line with increasing sales of electric vehicles in the industry.
"Along with the increasing sales of electric vehicles in the industry, BRI Finance's electric vehicle financing experienced positive growth of approximately 53% YoY," said Wahyudi to KONTAN on Wednesday (24/7).
Despite showing encouraging growth, the electric vehicle financing segment still faces a number of challenges.
One of them is that there are no special regulations regarding electric vehicle insurance. Apart from that, the relatively expensive price of electric vehicles is also an obstacle.
However, Wahyudi remains optimistic that this positive trend will continue and even increase in the future, as the electric vehicle market in Indonesia continues to mature.
"BRI Finance certainly mitigates these risks, namely with the price of electric vehicles being higher than ICE, so a special strategy is needed in distributing financing," he continued.
BRI Finance Risk Mitigation Strategy
To face these challenges, BRI Finance implemented several risk mitigation strategies. Wahyudi explained that companies have become more selective in channeling financing for these environmentally friendly vehicles.
BRI Finance carries out a more in-depth risk analysis of prospective customers, including evaluating their financial capabilities and income stability.
Apart from that, BRI Finance also applies financing distribution with short term tenors to certain segments.
This is done to avoid the risk of default which may arise due to the maintenance costs of electric vehicles which tend to be more expensive.