Bisnis.com, JAKARTA — PT Mandiri Utama Finance (MUF) is still recording good growth, including in terms of financing receivables, even though the national automotive market is experiencing a decline.

The Association of Indonesian Automotive Industries (Gaikindo) noted that wholesale car sales fell 9.1% annually (year on year/YoY) to 72,667 units as of September 2024. Retail car sales also decreased by 10.6% to 72,366 units, while domestic motorcycle sales were recorded to have decreased by 2%, with sales reaching 514,460 units according to the Indonesian Motorcycle Industry Association (AISI).

In the midst of this slowing market condition, MUF Director Rully Setiawan revealed that the company's financing receivables continued to record positive growth, exceeding the industry average.

"Total financing receivables managed by MUF until October 2024 reached IDR 34.1 trillion, growing 15.4% [YoY]. This growth was dominated by the new car financing segment," Rully told Bisnis, Sunday (10/11/2024).

Rully explained that to achieve this growth, MUF implemented several strategies. One of them is strengthening collaboration with various stakeholders, such as dealers, showrooms, partners, and banks, including Bank Mandiri and BSI.

He said that one of the company's biggest programs this year is collaborating with Gaikindo to hold the Mandiri Utama Finance Gaikindo Jakarta Auto Week (MUF GJAW) 2024 which will be held on November 22 to December 1, 2024 at ICE BSD, attended by more than 80 automotive brands.

"Through this event, MUF not only encourages financing growth, but also contributes to boosting national automotive sales in the remainder of 2024," he added.

Previously, the Financial Services Authority (OJK) reported that the principal financing receivables for motor vehicles as of September 2024 had increased by 9.93% (YoY) to IDR408.72 trillion. This shows that financing distribution is still growing positively amidst the decline in motor vehicle sales.

Overall, as of September 2024, financing receivables for financing companies also grew by 9.39% (YoY) to IDR501.78 trillion. Meanwhile, in terms of profit, the financing industry as of September 2024 grew by 0.84% ​​(YoY) or IDR16.97 trillion.

On the other hand, the risk profile of financing companies is still maintained with a gross non-performing financing (NPF) ratio recorded at 2.62% and a net NPF of 0.81%. OJK projects that NPF in financing companies will remain maintained in accordance with applicable regulations until the end of 2024 and 2025.