In October 2024, Indonesia's financing sector, particularly in the PVML (Lembaga Pembiayaan, Modal Ventura, and other financial services), demonstrated significant growth. The financing receivables of Financing Companies (PP) increased by 8.37% year-on-year (YoY), reaching IDR 501.89 trillion. This growth was primarily supported by investment financing, which saw a rise of 8.19% YoY.

Despite these gains, the sector faces ongoing challenges in maintaining risk profiles. The non-performing financing (NPF) ratio for Financing Companies remains under control, with the gross NPF recorded at 2.60% in October 2024, slightly down from 2.62% in September 2024. The net NPF also saw a small improvement, decreasing to 0.77%, compared to 0.81% the previous month. The gearing ratio for Financing Companies has remained stable at 2.34, well below the maximum threshold of 10.

The venture capital financing segment, however, experienced a contraction of 5.60% YoY in October 2024. The total financing value stood at IDR 16.32 trillion, slightly higher than the previous month’s IDR 16.25 trillion. This reflects the ongoing challenges in the venture capital industry, which has faced slowing growth compared to the other sectors within PVML.

The peer-to-peer (P2P) lending segment within fintech continues to expand, albeit at a slower pace. Outstanding financing in the P2P lending sector grew by 29.23% YoY, reaching IDR 75.02 trillion in October 2024. The 90-day non-performing loan (TWP90) ratio has remained stable at 2.37%, showing consistent risk management across the platform.

In contrast, the Buy Now, Pay Later (BNPL) segment saw a significant surge, with financing increasing by 63.89% YoY, reaching IDR 8.41 trillion. This growth was accompanied by a slight increase in the gross NPF ratio to 2.76%, from 2.60% in September 2024.

Regulatory measures from the Financial Services Authority (OJK) have been instrumental in maintaining sector stability. OJK has closely monitored PT Lunaria Annua Teknologi (KoinP2P), which faced issues with delaying payments to lenders, ensuring compliance with its management commitments and improvement plans. Additionally, OJK is actively investigating legal actions against Adrian Asharyanto, the former CEO of PT Investree Radika Jaya, as part of its ongoing efforts to maintain transparency and accountability in the financial services sector.

OJK has also been vigilant in ensuring that financing companies and P2P lending platforms meet the minimum equity requirements. As of October 2024, five Financing Companies and 10 P2P lenders have yet to fulfill the required equity thresholds. OJK is working closely with these firms to ensure they take necessary steps, including capital injections from shareholders or credible strategic investors.

To further enforce compliance, OJK has imposed administrative sanctions on several entities within the PVML sector in November 2024, including fines and written warnings. The authority hopes that these measures will encourage better governance, prudence, and adherence to regulations, ultimately driving stronger sector performance and contributing to economic growth.