Indonesian finance companies with gross NPF above 5% rise to 42 in July

Published 28 Sep 2026Data as of 14 Sep 2026IndonesiaCredit

42 finance companies had gross NPF above 5% in July, up from 38 in June (OJK).
Industry gross NPF was 3.03%; net NPF 0.81%.
Receivables were IDR 513.05 trn, growing only 2.01% year on year.

Facts

Distribution: 42 finance companies had a gross non-performing financing (NPF) ratio above 5% as of July 2026 (up from 38 in June). 4 had net NPF above the threshold, unchanged from June. Source: OJK (reported by ANTARA, 14 September). ¹

Industry averages: gross NPF 3.03% and net NPF 0.81% (July 2026); net NPF is after provisions. Same source. ²

Receivables: financing receivables were IDR 513.05 trn, up 2.01% year on year. Working-capital financing grew 6.32%. Sharia financing was IDR 32.06 trn (up 8.84% year on year). 9 of 144 companies were below the minimum capital of IDR 100 bn (all have submitted remediation plans). Same source.

Regions: Sukoharjo, Sampang and Kepahiang were cited as areas with high NPF. Same source.

Analysis

While the industry average is steady at 3.03%, the number of companies above the threshold rose in a single month (up from 38 in June). The gap between average and distribution indicates problems concentrated in certain firms and regions. In online lending, 16 platforms remain above the TWP90 threshold (OJK, July), so dispersion across non-banks appears entrenched. Receivables growth of 2.01% is below inflation (August 3.19%, BPS), implying a real-terms contraction.

Implications

ExecutivesCheck arrears distribution and regional concentration for each counterparty rather than relying on industry averages.

InvestorsLoosening underwriting to hold balances in a low-growth market tends to show up as bad debt one to two years later.

OperatorsFunding providers should ask co-lending and channelling partners to disclose delinquency by origination month.

Counterpoints and uncertainties

It is unclear whether the increase includes ratio rises from delayed write-offs or shrinking balances (denominator effects). Net NPF is low at 0.81%; if provisioning is adequate, one can argue the industry's loss-absorbing capacity is not a major concern.

Figures: see definitions

Finance companies with gross NPF above threshold: 42 (up from 38 in June). Number of finance companies with gross NPF above 5%. Multifinance (finance) companies. Basis date: 31 Jul 2026. Source: ANTARA: OJK: 42 perusahaan multifinance punya NPF bruto di atas 5 persen
Multifinance gross NPF ratio: 3.03%. Non-performing financing as a share of financing receivables, before provisions. Multifinance (finance) companies. Basis date: 31 Jul 2026. Source: ANTARA: OJK: 42 perusahaan multifinance punya NPF bruto di atas 5 persen

Sources

Reports are for information only and are not investment advice. Methodology: sources, verification and definitions