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Astra International sets moderate auto financing growth
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Seen in this picture are (from left) PermataBank retail banking director Djumariah Tenteram, Astra Credit Companies (ACC) CEO Siswadi, FIF Group CEO Margono Tanuwijaya, Toyota Astra Financial Services (TAF) marketing director Wisnu Kusumawardhana, Astra Financial director-in-charge Suparno Djasmin, Astra Insurance CEO Rudy Chen, Astra Life president director Auddie Wiranata, Gaikindo Indonesia International Auto Show (GIIAS)-Astra Financial project leader Gunawan Salim and Astra Financial communication coordinator Yulian Warman after a press conference in Jakarta recently. (Antara/Audy Alwi)
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stra Financial, a loan consortium under diversified conglomerate PT Astra International, is targeting a slight increase in its main business line, auto financing, amid stagnant automotive industry growth.
Astra Financial director Suparno Djasmin told reporters in Jakarta recently that the consortium expected to see 5 percent growth in its total auto loan disbursement to Rp 85 trillion (US$5.99 billion) this year from Rp 81 trillion in 2018.
The consortium includes 11 entities, private lender PermataBank; insurance companies Asuransi Astra and Astra Life; automobile financing Astra Credit Companies (ACC) and Toyota Astra Finance; motorcycle financing Federal International Finance (FIF); heavy equipment financing Surya Artha Nusantara Finance and Komatsu Astra Finance; venture capital Astra Ventura; financial technology company Astra Welab Digital Artha and pension fund Dana Pensiun Astra.
“It [the growth projection] is in line with assumptions on uptick growth in the automotive industry, both in car or motorcycle sales,” Suparno said.
According to the Association of Indonesian Automotive Manufacturers (Gaikindo), domestic sales of cars may reach 1.1 million units this year, lower than 1.15 million in 2018.
Meanwhile, the domestic sales of motorcycles, according to the Indonesian Motorcycle Industry Association (AISI), may be stagnant at 6.3 million units this year.
Despite the sluggish outlook on the growth of the automotive industry, Margono Tanuwijaya, CEO of Astra International’s motorcycle financing company FIF, said his company targeted to disburse Rp 41 trillion this year, up 10 percent from Rp 37 trillion in 2018.
