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Multifinance companies encouraged to expand markets amid low growth

27 November 2019 15:37

JAKARTA. The Financial Services Authority (OJK) is encouraging multifinance companies to expand their markets and products in order to score growth amid the industry's low performance this year.

Head of OJK's Non-Bank Financial Industry Supervision Department Bambang W. Budiawan said that until the end of 2019 the growth of multifinance is still far below the 7% target, while receivable growth until September 2019 only reached 3.53% and assets only grew 1.03%.

This year is still plagued by global economic pressure, with the heavy equipment sector being hit the hardest due to fluctuating commodity prices until the third quarter of 2019, while sales of cars and motorcycles have remained flat.

Thus, Mr Budiawan is encouraging multifinance companies to utilise the flexibility of business activities regulated in POJK No.35/2018, with potential products including cash funds to improve multi-use portions and factoring.

"There is still a lot that can be worked on. We will also encourage tourism-related industries," said Mr Budiawan after the Indonesian Financing Companies' Association (APPI) National Seminar on Tuesday (26/11). (AM/MS)

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