JAKARTA – The motorcycle financing market is believed to be able to grow steadily despite the potential increase in interest rates this year, because motorcycles are still a public need.
Marketing Director of PT Wahana Ottomasi Multiartha Tbk. Simon Tan Kian Bing said it would not be too affected by the interest rate increase. He assessed in recent years the ups and downs of interest rates have no significant effect on the channeling of financing in the segment of motorcycles.
“We still have confidence [performance growth] in 2018,” he said after the annual general meeting of shareholders (AGM), Thursday (15/3/2018).
Subsidiary of PT Bank Maybank Indonesia Tbk. this is primarily engaged in the financing of two-wheeled vehicles. Throughout 2017, the multi-finance issuer with WOMF’s stock code disbursed Rp 6.45 trillion of financing or grew by about 20% compared to the previous year.
Of the realization, around 64% or Rp4.13 trillion is allocated for new motorcycle financing, 5% or Rp313 billion for used motorcycles, and about 21% or Rp1,34% for credit distribution through MotorKu products. Moreover, the company’s financing is channeled through Mobilku products.
Simon also assess until now the motorcycle is still a primary requirement for two-wheeled riders. Therefore, raising the interest rate is also considered not to affect public interest to buy motorcycles by accessing financing services.
Separately, President Director of PT Pemeringkat Efek Indonesia (Pefindo), Salyadi Saputra, said that if the interest rate increase is realized, the financing distribution performance for the multifinance sector could be affected. However, he insists that the impact is not significant on certain segments. “Within a few years, interest rate changes proved to have no effect on the segment’s loan portfolio,” he said.