OJK Records 6 Financing Companies Not Yet Meeting Minimum Equity Requirements

MULTIFINANCE - JAKARTA. The Financial Services Authority (OJK) recorded that there are still 6 financing companies out of a total of 146 financing companies that have not met the minimum equity requirement of IDR 100 billion until the end of February 2024.

The Executive Head of the Supervisory Agency for Financing Institutions, Venture Capital Companies, Microfinance Institutions and Other Financial Services Institutions (PVML) OJK Agusman said, the 6 financing companies are still under monitoring as part of the realization of the action plan that has been submitted by the financing companies and has been approved by the OJK.

"The action plan submitted by the 6 financing companies consists of capital injections from Controlling Shareholders (PSP) and capital injections from new strategic investors, both local and foreign, or the return of business licenses," said Agusman in a press conference in Jakarta, Monday (4/3).

Agusman added, the OJK has imposed administrative sanctions on financing companies that have not met the capital requirements in accordance with the applicable regulations.

The minimum equity requirement of IDR 100 billion for financing companies is regulated in OJK Regulation (POJK) Number 35 of 2018 concerning the Implementation of Financing Company Business. In this regulation, financing companies are required to have at least IDR 100 billion in equity by no later than December 31, 2019.

For information, the OJK recorded financing receivables of multifinance companies amounting to IDR 475.58 trillion in January 2024. The value of financing receivables in January 2024 grew by 13.07% Year on Year (YoY).

The Net Non Performing Financing (NPF) of financing companies was recorded at 0.69% in January 2024. This value increased from the previous month which reached 0.64%. Meanwhile, the Gross Non Performing Financing (NPF) of financing companies in January was 2.50%. This figure increased compared to the previous month which reached 2.44%.

The gearing ratio of financing companies was recorded in the good category, which is 2.24 times in January 2024, while in December 2023 it was 2.26 times.