PT Mandiri Tunas Finance (MTF), a leading local financing company in Indonesia, has succeeded in growing positively amidst economic uncertainty and less conducive automotive growth.

 

Main Director of MTF, Ignatius Susatyo Wijoyo revealed that MTF managed to record financing of IDR 18.63 trillion at the end of 2016, higher than the total lending in 2015 which was IDR 17.14 trillion. “So MTF financing can still grow by 8.68% year on year,” explained Susatyo in a press conference on the Company's 2016 performance results in Jakarta, March 8 2017. This is a proud achievement considering that industrial financing growth in 2016 reached 6.67%.

 

Susatyo explained, of the total MTF financing throughout 2016, consisting of retail financing of IDR 14.73 trillion, corporate fleet financing of IDR 2.21 trillion, followed by Motor Vehicle Credit (KKB) (referral program from Bank Mandiri customers) amounting to IDR 1.64 trillion and multipurpose credit amounting to IDR 34.89 billion.

 

The challenges of a weakening economy and declining people's purchasing power mean that MTF continues to implement strict risk management in the credit process. This can be seen from the position of the non-performing finance ratio (Non Performing Finance/NPF) which is still maintained at a safe level. “We also maintain NPF at the level of 1.49% as of 31 December 2016  and with our reserves also being very strong, this level is still quite safe,” Susatyo emphasized.

 

The growth of MTF lending which was in line with the maintained NPF level ultimately resulted in an increase in net profit of 9.1% at the end of 2016. “Our profit grew to IDR 335 billion in December 2016, "an increase from the final profit of 2015 which amounted to IDR 307 billion," he said. said Susatyo

 

Susatyo explained that MTF's profit growth was achieved in line with revenue growth in December 2016 which amounted to IDR 1.52 trillion, up from the position in December 2015 which amounted to IDR 1.28 trillion. “So our lending growth is parallel to revenue growth, which ultimately produces profits for the company,” explained Susatyo.

 

With a positive performance record, in 2017 MTF is ready to face competition in the financing industry throughout the year. In terms of capital, MTF has continued to increase capital in the last five years (2011 – 2016) with growth of 29%.  The capital position in December 2016 was recorded at IDR 1.47 trillion.

 

Susatyo revealed that the company's liabilities grew by 24% year on year, due to an increase in bank loans. Where the contribution of bank loans was 56% of total liabilities as of December 31 2016. Meanwhile, MTF assets as of December 2016 were recorded at IDR 11.40 trillion, with consumer financing receivables contributing the most to total assets, namely 87%.