JAKARTA. Data from the Financial Services Authority (OJK) recorded that the performance of finance companies throughout 2020 was hit by the Covid-19 pandemic and dragged the value of financing receivables by 18.23%.
Based on OJK data, net financing receivables decreased by 18.23% from IDR452.21 trillion in 2019 to IDR369.75 trillion.
Of that amount, multipurpose financing which has been the biggest contributor to multi-finance companies, fell 19.05% (yoy) to IDR222.46 trillion. Followed by investment financing with a value of IDR110.95 falling 17.7 percent (yoy), working capital financing with a value of IDR24.63 trillion falling 6.95 percent (yoy).
Head of Supervision Department IKNB 2B OJK Bambang W. Budiawan hopes that 2021 will be a turnaround period for the performance improvement of the financing industry.
OJK also noted that the current multi-finance restructuring has reached IDR189.96 trillion, or 48.52% of the total financing receivables with financing contracts reaching 5 million. (AM/LM)