T&S Asset Management

Indonesian finance companies' profit rises 19.04% by August; online lenders' profit dips

Published Data as of IndonesiaCompetition & capitalUnsecuredVehicle finance
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Key points

Implications for lenders

Online lenders whose book grew 22.07% while industry profit was down 2.99% year on year may need to review risk-based pricing and early collections, with TWP90 at 4.73%. Finance companies facing −1.81% growth in productive financing can find it harder to grow without loosening credit standards.

Implications

ExecutivesMultifinance groups are earning more on a book that is barely growing; online platforms are growing fast but earning less, which may push them to tighten pricing or underwriting.
InvestorsProfit growth in multifinance without asset growth may be hard to repeat; online lending's growth is not yet translating into higher profit.
OperatorsThe fall in productive financing points to weaker demand from businesses for investment and equipment finance through finance companies.

Facts

Finance companies: the Financial Services Authority (OJK) said in written answers for its September board meeting that the multifinance industry's net profit reached IDR 17.38 trn as of August 2026, up 19.04% year on year. 1 Financing to productive sectors was IDR 241.88 trn, down 1.81% year on year, 2 while investment financing fell −4.47%. 3 Total receivables grew 1.68% and gross non-performing financing was 3.04%. 4

Online lenders: the pindar industry's comprehensive profit was IDR 1.58 trn as of August, down 2.99% year on year, 5 compared with IDR 1.36 trn as of July, up 18.20% year on year. 6 Outstanding online loans grew 22.07% 7 and the industry's 90-day arrears ratio (TWP90) was 4.73%. 8

Analysis

Across lender types: finance companies' profit growth of 19.04% is far ahead of receivables growth of 1.68%, so earnings are not coming mainly from a larger book; OJK's figures do not break down margins, funding costs or credit costs. Online lenders show the opposite pattern: a book growing 22.07% with profit down 2.99% year on year.

Over time: the online lending profit change was −2.99% as of August, after +18.20% as of July, while TWP90 stood at 4.73% in August (chart). With OJK drafting a longer bad-loan cut-off and a lender reserve for platforms, profitability may matter more for which platforms can absorb new requirements.

Online lending TWP90 (90+ day arrears) (%)
02464.622026-044.422026-054.262026-064.322026-074.732026-08
Online lending TWP90 (90+ day arrears) (%)
2026-044.62
2026-054.42
2026-064.26
2026-074.32
2026-084.73

Industry-wide share of licensed P2P (pindar) loans more than 90 days past due (OJK TWP90), month-end · Source: OJK monthly Board of Commissioners press releases (RDKB) (2026-04, 2026-05, 2026-06, 2026-07, 2026-08)

Counterpoints and uncertainties

OJK's written answers do not state how profit is measured over the year or which items drove the change, and a single month's swing in a cumulative figure can reflect one-off items. The pindar profit figure is comprehensive profit, which can include items beyond lending income.

Key figures

  1. Finance companies' net profit, August 2026: IDR 17.38 trn (up 19.04% year on year)
    OJK's written answers do not state whether the figure is cumulative from January; OJK industry statistics normally report profit year to date.
    . Net profit of the finance-company (multifinance) industry as of August 2026, reported by OJK. Indonesia, OJK data. Basis date: 31 Aug 2026. Source: Bisnis.com: Industri Multifinance Raup Laba Rp17,38 Triliun pada Agustus 2026 (2026-10-14, OJK)
  2. Finance companies' productive-sector financing, August 2026: IDR 241.88 trn (down 1.81% year on year). Outstanding finance-company financing to productive sectors, August 2026 (OJK). Indonesia, OJK data. Basis date: 31 Aug 2026. Source: InvestorTrust: Laba Multifinance Melonjak 19,04%, Pembiayaan Produktif Masih Lesu (2026-10-15, OJK)
  3. Finance companies' investment financing growth: −4.47%. Year-on-year change in finance companies' investment financing. Finance companies (multifinance) supervised by OJK. Basis date: 31 Aug 2026. Source: Kontan: Pembiayaan multiguna multifinance tembus Rp 257 triliun, ini data terbaru OJK (2026-10-08)
  4. Finance companies' gross NPF ratio: 3.04% (up from 3.03% in July). Gross non-performing financing as a share of receivables, finance companies (OJK). Finance companies (multifinance) supervised by OJK. Basis date: 31 Aug 2026. Source: OJK: Siaran Pers RDKB September 2026 (SP 185/OJK/DKPU/X/2026, 2026-10-05)
  5. Online lending industry profit, August 2026: IDR 1.58 trn (down 2.99% year on year)
    The source says 'as of August 2026'; the July figure of IDR 1.36 trn is lower, consistent with a cumulative year-to-date measure.
    . Comprehensive profit of the online lending (pindar) industry as of August 2026, reported by OJK. Indonesia, OJK data. Basis date: 31 Aug 2026. Source: Kontan: Laba Industri Fintech P2P Lending Turun 2,99% Jadi Rp1,58 Triliun per Agustus 2026 (2026-10-08, OJK)
  6. Online lending industry profit, July 2026: IDR 1.36 trn (up 18.20% year on year). Comprehensive profit of the online lending (pindar) industry as of July 2026, reported by OJK. Indonesia, OJK data. Basis date: 31 Jul 2026. Source: Kontan: Laba Industri Fintech P2P Lending Turun 2,99% Jadi Rp1,58 Triliun per Agustus 2026 (2026-10-08, OJK)
  7. Online lending outstanding, year-on-year growth: 22.07% (down from 24.76% in July and 25.88% in June)
    July and June growth rates are from OJK's September 2026 board press release (RDKB August 2026).
    . Year-on-year growth in outstanding loans of licensed P2P lending platforms. Licensed online lending (pindar / P2P) platforms. Basis date: 31 Aug 2026. Source: OJK: Siaran Pers RDKB September 2026 (SP 185/OJK/DKPU/X/2026, 2026-10-05)
  8. Online lending TWP90 (90+ day arrears): 4.73% (up from 4.32% in July). Share of outstanding loans more than ninety days past due, industry-wide (OJK TWP90). Licensed online lending (pindar / P2P) platforms. Basis date: 31 Aug 2026. Source: OJK: Siaran Pers RDKB September 2026 (SP 185/OJK/DKPU/X/2026, 2026-10-05)

Sources

  1. Bisnis.com: Industri Multifinance Raup Laba Rp17,38 Triliun pada Agustus 2026 (2026-10-14, OJK)
  2. InvestorTrust: Laba Multifinance Melonjak 19,04%, Pembiayaan Produktif Masih Lesu (2026-10-15, OJK)
  3. Kontan: Laba Industri Fintech P2P Lending Turun 2,99% Jadi Rp1,58 Triliun per Agustus 2026 (2026-10-08, OJK)
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A Japanese version of this article is available: 日本語版

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