Indonesia’s multifinance industry is entering a new phase of growth, fueled by rapid digitalization, regulatory support, and rising demand across various financing segments. With 200 active companies in 2024 and total industry assets reaching IDR 630.1 trillion, the sector has become a key contributor to the country’s financial ecosystem. The resurgence of company numbers after years of decline signals renewed investor confidence and a more conducive business environment, especially for financing firms, which dominate the landscape with IDR 530.4 trillion in receivables. Digital transformation, along with increased vehicle and equipment financing demand, continues to be a major growth catalyst.
Looking ahead, the industry is expected to grow at a compound annual rate of 7% through 2025, driven by innovation in fintech, improved financial literacy, and stronger institutional oversight from OJK. Emerging segments such as venture capital and sharia-based financing are also gaining traction, expanding the industry's reach beyond traditional markets. With strategic investment in digital capabilities and risk management, multifinance companies are well-positioned to not only remain competitive but also play a pivotal role in advancing Indonesia’s financial inclusion and economic resilience.
A Decade of Growth in Economic Contribution
Multifinance companies, also known as financing companies, are business entities that provide funding or capital goods to individuals and businesses. Unlike banks, they do not raise funds from the public through savings or demand deposits. Instead, they source capital from financial institutions—such as banks—or by issuing debt securities.
The multifinance sector in Indonesia includes:
- Financing Companies, which serve various consumer and business financing needs,
- Infrastructure Financing Companies, which support large-scale development projects, and
- Venture Capital Companies, which focus on funding startups and high-growth businesses.
Together, these entities play a vital role in expanding access to financing across sectors and supporting Indonesia’s broader economic development.
The contribution of financial intermediation services to the economy has also been on an upward trajectory. From IDR 290,943.1 billion in 2015, the sector's contribution rose steadily to IDR 601,790.9 billion in 2024. The sector experienced slower growth between 2017 and 2022, with the lowest rate recorded at 2.39% in 2018. However, starting in 2023, the growth rate surged to 7.01%, indicating stronger demand for financial services, particularly in vehicle financing, SME loans, and digital financing solutions.
When viewed from the annual growth rate, the multifinance sector experienced a slowdown in recent years, particularly during the 2017-2022 period. In 2017, the growth rate declined to 3.42%, reaching its lowest point in 2018 at just 2.39%. This slowdown can be attributed to global economic conditions and domestic macroeconomic policies that affected purchasing power and credit demand. However, since 2023, the industry has shown a significant recovery, with growth reaching 7.01%, indicating increased demand for financing.
According to a report from CRIF Indonesia, Financial Intermediation Services in Indonesia is projected to grow at a Compound Annual Growth Rate (CAGR) of approximately 7% in 2025 Year on Year. This growth is driven by rising demand for vehicle and equipment financing, both in the retail and corporate sectors. Additionally, another contributing factor to the industry's expansion is the advancement of digitalization, enabling multifinance companies to offer more efficient and accessible services to consumers.
Beyond demand factors, policies and regulations also influence industry’s dynamics. OJK continues to tighten supervision of financing companies to enhance transparency and financial sector stability. This measure is taken to ensure the sustainability of multifinance businesses and to increase consumer confidence. Meanwhile, trends in Sharia-based financing and green financing are also growing, further diversifying the products available in the market.
Going forward, the multifinance industry is expected to continue its growth with support from financial technology (fintech) innovations and increased financial literacy among the public. With various initiatives from regulators and industry players, the multifinance sector is anticipated to become a key pillar in promoting financial inclusion and sustainable national economic growth.
Multifinance Sector Contribution to National GDP
Based on BPS data for 2024, the financial intermediation services sector, including multifinance, contributed 2.72% to the national Gross Domestic Product (GDP), with an economic value of IDR 601,790.9 billion out of a total GDP of IDR 22,138,964 billion. Although this sector has experienced stable nominal growth, its contribution to GDP remains relatively small compared to other sectors, which collectively account for 97.28%. This indicates that the multifinance and financial services sector still has room for further development to enhance its role in the national economy. The future growth of this sector will heavily depend on digital innovation, increased financial access, and regulations that support the sustainability of the multifinance industry in Indonesia.
The Multifinance Industry Landscape in 2024
The multifinance industry in Indonesia in 2024 consists of 200 companies, comprising 192 conventional companies and 8 sharia-based companies.
The majority of multifinance companies belong to the financing sector, with a total of 146 companies, followed by venture capital firms (53 companies) and infrastructure financing (1 company).
Financing Companies as the Growth Engine
- Financing Companies
As the largest segment in the multifinance industry, financing companies comprise 146 units with total outstanding receivables reaching IDR 530.465 trillion. This segment plays a crucial role in supporting the economy through various products such as vehicle leasing, consumer financing, and working capital loans. With increasing demand for vehicles and production equipment, this sector continues to expand significantly.
The growth of financing companies is projected to reach 7%-8% annually in 2025. Key drivers of this growth include rising demand from MSMEs and the acceleration of digitalization in financing services. The adoption of technology in multifinance operations enhances efficiency and competitiveness in the market. CRIF Indonesia notes that companies adopting digital-based business models will have an advantage in reaching a broader customer segment.
By 2025, total outstanding receivables in the financing industry are expected to reach approximately IDR 600 trillion. The primary growth sources will be vehicle and heavy equipment financing, which are increasingly needed across various economic sectors, including manufacturing and logistics. With improved credit accessibility and innovations in financing schemes, this sector is set to experience sustainable expansion.
2. Venture Capital Companies
Venture capital firms focus on investments in startups and emerging businesses, with 53 units holding total assets of approximately IDR 26.555 trillion. Although fewer in number compared to financing companies, this segment has immense growth potential, in line with the rapid expansion of Indonesia's startup ecosystem.
CRIF Indonesia estimates that this segment will grow at a rate exceeding 10% annually until 2025. The primary growth drivers include the increasing number of startups in technology, finance, and e-commerce sectors, which attract substantial investment interest. Additionally, government support through pro-innovation policies and tax incentives for venture capital firms further strengthens the sector's appeal to investors.
Projections for 2025 indicate a significant increase in total investments in the venture capital sector. With the development of new funding schemes and collaborations with financial institutions, venture capital will play an increasingly vital role in supporting innovation and the growth of Indonesia’s technology-driven economy.
3. Infrastructure Financing Companies
The infrastructure financing segment has a more limited scope, with only one registered company holding total assets of approximately IDR 14.657 trillion. Despite its smaller scale, this company plays a critical role in supporting large-scale national development projects.
The segment is expected to grow at a rate of 5%-6% annually until 2025. The main driver of this growth is increased infrastructure investment by the government, particularly in toll road construction, public transportation, and energy projects. According to CRIF Indonesia, private sector investment is also beginning to enter this segment through public-private partnership (PPP) financing schemes, which could accelerate the realization of strategic national projects.
By 2025, total receivables in the infrastructure financing sector are projected to rise, aligning with the government’s commitment to accelerating infrastructure development. With regulatory support and private sector involvement, infrastructure financing companies are expected to strengthen their role in supporting Indonesia's long-term economic growth.
Summary of Findings
The multifinance sector in Indonesia has demonstrated dynamic and resilient growth in recent years, propelled by regulatory changes, technological progress, and shifting consumer behavior. After a decline in the number of multifinance companies from 176 in 2020 to 147 in 2023, the sector rebounded strongly in 2024 with 200 companies operating—reflecting renewed market confidence and improved regulatory frameworks. This revival has been largely supported by the acceleration of digitalization and the government's financial inclusion programs, which have opened access to underserved markets.
In terms of economic contribution, the financial intermediation sector has consistently expanded, growing from IDR 290.9 trillion in 2015 to over IDR 601.7 trillion in 2024. Despite slower growth between 2017 and 2022, the sector experienced a strong recovery in 2023 with a growth rate of 7.01%, driven by heightened demand in areas such as vehicle financing, SME lending, and digital credit solutions. Looking ahead, CRIF Indonesia projects a compound annual growth rate (CAGR) of around 7% in 2025, underpinned by the rising demand for vehicle and equipment financing, increased digital innovation, and a growing interest in Sharia-based and green financing solutions—further broadening the industry's growth potential and strategic relevance.
