Bisnis.com, JAKARTA - The Indonesian Financing Companies Association (APPI) stated that the financing industry will only grow by around 1% in 2025. This figure is far from the expected target of 8% to 10%. APPI Chairman Suwandi Wiratno explained that this is not only due to pressure on people's purchasing power, but also because the financing ecosystem is disrupted by rampant acts of thuggery and intervention by certain mass organizations or NGOs, as well as the widespread practice of buying and selling vehicles with only a vehicle registration certificate (STNK). "This is why we desperately need government assistance. We also need assistance from all stakeholders, as our ecosystem is disrupted," he said at the Economic & Insurance Outlook 2026 event in Jakarta on Monday (December 22, 2025). Suwandi explained that the current controversy arises when debt collectors execute collateral, often blaming the financing company.

He continued, however, the collection process is initiated because the debtor has failed to fulfill their payment obligations, and in many cases, the financing has been transferred to other parties. On the other hand, financing companies consider collateral recovery a crucial step, given that the industry's funding structure relies heavily on bond issuance and bank loans, which account for 70% to 80%.

"If we don't rescue the collateral and allow it to be written off and result in losses, what will happen to our economy? Will there be a crisis? A financial crisis will come, right?" he asked. According to Suwandi, the portfolios of multifinance companies are quite large. The value of financing still recorded on the balance sheets of finance companies reaches more than IDR 500 trillion, while the industry's total exposure, including off-balance sheet exposure, is estimated to exceed IDR 1,800 trillion. Furthermore, the President Director of Chandra Sakti Utama Leasing (CSUL) recounted a case of a mass organization in Surabaya kidnapping a multifinance employee for towing a truck. The kidnapped employee was a legal staff member who was simply trying to explain why the vehicle was seized. "It's very sad, very sad for our country, that something like this is happening, and in my opinion, it's being allowed to happen," Suwandi concluded. Not stopping there, Suwandi also highlighted the rampant practice of buying and selling vehicles using only a Vehicle Registration Certificate (STNK) without a Motor Vehicle Ownership Certificate (BPKB), aka STNK only, openly. He said this practice is common on social media such as Facebook, TikTok, Instagram, and YouTube. According to him, people now seem to no longer fear the law. "We can still make a profit. We can still stand strong. But we will not dare to talk about growth in the future if this is not helped [eradicated] by the government," he said. For this reason, APPI has sent letters to the Ministry of Communication and Digital (Komdigi) and the Indonesian National Police Traffic Corps. In fact, Gaikindo and AISI have also been invited to participate in submitting a request to the government. Suwandi is concerned that if this is not immediately eradicated, financing companies will become more selective in distributing financing. "We will be charging a large down payment, perhaps 30% to 40% in the future, and we will no longer approve anyone. Previously, we approved 10 applications, and now we only approve 4, or a maximum of 5, of those 10 applications. We really have to be sure," he stressed.