KONTAN.CO.ID - JAKARTA. The Financial Services Authority (OJK) recorded gross Non-Performing Financing (NPF) of financing companies or multifinance at 2.70% as of December 2024. This figure was recorded as improving or decreasing slightly, when compared to the achievement as of November 2024 which was 2.71%.

The Association of Indonesian Financing Companies (APPI) stated that the improvement in the industry's NPF level was inseparable from the efforts made by financing companies. APPI General Chair Suwandi Wiratno saw that many companies had made improvements in terms of financing so that NPF did not continue to increase.

"Actually, the quality (of distribution) has improved, it can still survive, even improving by 0.01%," he told Kontan, Friday (7/2).

Quality financing is also inseparable from the role of the community. Therefore, Suwandi emphasized that the community must have good governance in paying its debts. He said in this case, it is important to intensify education for the public, including young people, to be disciplined in paying debts or installments

"Remember, if you have debts, of course you need to return them on time," he said.

Suwandi said that if the borrower is indeed unable to pay, they can come to the relevant financing company and ask for relief for restructuring or ask for their installments to be adjusted.

"We don't want the collateral to be withdrawn. Most importantly, there must be payment (debt repayment)," said Suwandi.

For information, OJK also noted that financing receivables from financing companies or multi-finance reached IDR 530.46 trillion as of December 2024. This value grew by 6.82% year on year (YoY).