Bisnis.com, JAKARTA. The Financial Services Authority (OJK) reported that motor vehicle financing continued to increase as of September 2024. This trend contrasts with motor vehicle sales data for the same period.

The Association of Indonesian Automotive Industries (Gaikindo) recorded a 9.1% year-on-year (yoy) decrease in wholesale car sales to 72,667 units by September 2024. Retail car sales, from dealerships to consumers, also dropped 10.6%, down to 72,366 units. Similarly, the Indonesian Motorcycle Industry Association (AISI) noted a 2% decline in domestic motorcycle sales, reaching 514,460 units.

Agusman, Chief Executive of the Supervision for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions (PVML) at OJK, reported that principal financing receivables for motor vehicles rose 9.93% yoy as of September 2024, reaching Rp408.72 trillion.

"This indicates that financing distribution continues to grow positively despite the decline in motor vehicle sales," Agusman stated in a written response, quoted on Friday (8/11/2024).

Overall, as of September 2024, financing receivables for financing companies grew by 9.39% yoy, totaling Rp501.78 trillion. Meanwhile, industry profits for financing grew by 0.84% yoy, or Rp16.97 trillion, as of September 2024.

“With this growth and several months remaining before the books close in December 2024, financing growth for financing companies is expected to remain on target at 10-12% by year-end 2024, although there is a risk of downward bias, necessitating greater financing receivables growth in the future,” Agusman added.