Motor vehicle financing industry in indonesia has grown positively amid the difficult national economic condition affected by global criss as a result of trade war between USA and China since 2018. Up to present, motor vehicle products have still become the main field and dominate (95%) of consumer finance distribution object in Indonesia.
Based on data analysis from a number of competent institutions, the development of total finance value of all motor vehicles in Indonesia had kept on increasing in the last five years (2015 – 2019). In 2015 total motor vehicle finance value amounted to Rp. 236.90 trillion rose to Rp. 306.59 trillion in 2019.
From the output of CDMI Consulting’s research to a number of leading finance companies and dealers that in 2015 the finance value of new cars in indonesia was Rp. 113.51 trillion went up to Rp. 141.75 trillion in 2019. The finance value of used cars in 2015 reached Rp. 54.69 trillion escalated to Rp. 81.17 trillion in 2019. Whereas, the finance value of motorcycles in 2015 was Rp. 67.89 trillion soared to Rp. 83.67 trillion in 2019.
Another interesting thing for being observed is tight competition among finance companies in Indonesia. Based on the financial performance of 65 finance companies studied by CDMI that tight competition is seen from the amount of finance value and their net profit earning. In 2018, from finance company groups with assets of more than Rp. 10 trillion, five largest profit earning company groups were PT Federal International Finance with the largest profit earning of Rp. 2.31 trillion followed by PT Adira Dinamika Multi Finance of Rp. 1.81 trillion, PT BFI Finance of Rp. 1.47 trillion, PT Astra Sedaya Finance of Rp. 1.11 trillion and PT Summit Oto Finance of Rp. 461.3 billion.