Details News

January 14, 2021

BFI Finance (BFIN) Aims for Heavy Equipment Financing to Increase 20 Percent This Year

Bisnis.com, JAKARTA - Financing company PT BFI Finance Indonesia Tbk. (BFI Finance) targets heavy equipment-related financing growth in 2021.

Finance Director and Corporate Secretary of BFI Finance Sudjono confirmed that this is in view of the increasing demand for heavy equipment as a result of this year's plantation and mining commodity prices, as well as construction activities.

"BFI Finance also anticipates an increase in demand in these sectors. It is expected that there will be growth in the heavy equipment financing sector above 20 percent in 2021," said Sudjono to Bisnis, Wednesday (13/1/2021).

Sudjono explained that the financing of the productive sector to heavy equipment and machinery is one of the biggest contributors to BFI Finance's portfolio after used cars.

The last position as of September 2020, this company coded BFIN posted net financing receivables worth IDR 13.52 trillion, a decrease of 19.4 percent (year-on-year / yoy) from the 2019 position of IDR 16.77 trillion.

The composition of financing receivables managed by BFIN of 71.2 percent is still supported by the used car segment, followed by heavy equipment and machines reaching 14.3 percent, used motorbikes 9.9 percent, and finally the combined financing for new cars, property-backed, and sharia reaches 4 , 6 percent.

Sudjono hopes that the positive sentiment towards one of BFI Finance's mainstay segments will be able to boost the company's plan in 2021 to restore the size of the business to the pre-Covid-19 pandemic.

Especially in terms of new financing, if in the 2020 period, to be precise until the third quarter of 2020 BFIN was only able to book IDR 5.43 trillion. The difference is far from the achievements in the third quarter of 2019 which reached Rp. 11.31 trillion, or a decrease of 52 percent (yoy).

This is why in its business plan, BFIN is aggressively taking advantage of business opportunities in the midst of macroeconomic improvements, including filling gaps left by some competitors.

In addition, BFIN plans to complete all debt restructuring that occurred during pandemic conditions so that there is no difference in quality between normal and restructured receivables, as well as digital transformation for all transactions using data-based technology.

"BFI Finance is ready to increase business growth which was delayed due to the pandemic and to maximize opportunities and sectors that have not been fully served such as the supply chain sector," added Sudjono.

Previously, Chairman of the Association of Indonesian Financing Companies (APPI) Suwandi Wiratno explained that heavy equipment is indeed one of the mainstay sectors that support the rise of finance companies in 2021.

There is an opportunity for financing from the sale or leasing of the heavy equipment sector to increase conservatively, given the expansion of the construction, mining, agriculture and forestry sectors.