Indonesia’s financing growth trails target as mining expansion slows
Financing grew 1.68 per cent year on year through August 2026, below the 6–8 per cent target, while cash purchases limited the benefit from rising EV sales.
Indonesia’s financing industry risks falling short of its 2026 growth target after recording year-on-year growth of just 1.68 per cent through August. Suwandi Wiratno, chairman of the Indonesian Financing Companies Association (APPI), said mining equipment financing was under pressure and stronger vehicle sales had not translated into comparable financing demand.
Speaking to CNBC Indonesia on 5 November, Suwandi said APPI and the Financial Services Authority (OJK) had targeted growth of 6–8 per cent at the start of 2026. Mining contractors and borrowers had planned to buy or replace heavy equipment, but uncertainty over work plan and budget approvals, known as RKAB, led them to defer capital spending.
Investment financing contracted by around 4–5 per cent year on year, he said. RKAB approvals for 2026 began coming through around August–September, but the remaining time before year-end was considered insufficient to lift growth significantly.
Suwandi said the association’s research found that electric vehicle buyers generally used their own cash. Checks with used-car dealers and showrooms also indicated many cash purchases, while some buyers obtained financing from other financial institutions. Separately, automotive association Gaikindo recorded national electric car wholesale sales of 117,218 units in January–September 2026, up 113.7 per cent from the same period in 2025.
Despite the weak growth, Suwandi said financing companies were maintaining credit quality, with non-performing loans at 3 per cent, while seeking to ensure borrowers could meet their obligations.
