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Development of business in car finance in Indonesia 2014.

Backgrounds

Increase in the country's car production in the past several years has boosted business in car finance as around 80% car purchases are financed with credits from banks or multifinance companies.

The new policy of the government through a regulation of the finance minister No 43/pMk.010/2012 and 220/PMK.010/2012, which increase the advance payment for consumer finance for motor vehicle to at least 25% has no significant effect on automotive sales. The policy was aimed at curbing purchases with credit to prevent an increase in non performing credit amid the economic uncertainty. Automotive sales has continued to climb to 1.22 million units in 2013 from 1.11 million units in 2012 or an increase of 10.2%.

Currently with the increase in the benchmark interest rate of Bank Indonesia to 7.5%, the growth of sales slowed slightly, but car finance has tended to increase partly attributable to the production of LCGC (Low Cost Green Car) or energy saving cars.

In the whole of 2013, car finance was estimated to reach Rp142.trillion. In 2014, car finance with credits are forecast to reach Rp 156 trillion .

Car finance in Indonesia is still dominated by old and big players. Generally big players in motor vehicle finance business are members of big automotive company group such as Astra, Indomobil and Kramayudha Tiga Berlian Groups.

Development of Car Industry In Indonesia

According to data from The Indonesian Federation of Motor Vehicle Industries (Gaikindo) car production and sales in 2013 grew from the previous years. Production reached 1.17 million units in 2013 from 1.07 million units in 2012 or an increase of 10.1%.

The largest contribution to production was from the type of 4x2 reaching 786,320 units (January--November 2013). In November alone production reached only 67,963 units or down 10.48% from 75,916 units in the previous year.

In 2014, domestic car market was brisker to follow the economic condition which grew faster.

In 2014, the country's car production is forecast to reach 1.3 million units, with installed production capacity of 1.6 million units per year. The increase in target followed the launch of LCGC (low cost and green cars) which are produced for the first time in 2014. LCGC contribute around 10% to the country's total production of cars.

PT Suzuki Indomobil Sales (SIS) relies on LCGC of Suzuki Karimun Wagon R to boost its market share to 16.7% in 2014, in addition to MPV.

In addition to Suzuki Karimun Wagon R, there are three other brands of LCGC hitting the street earlier including Astra-Toyota Agya, Asta-Daihatsu Ayla, and Honda Brio Satya.

Car sales up in 2013

In 2013, car sales rose 10.2% to a new peak at 1.22 million units from 1.11 million units in 2012. The sales exceeded target set by Gaikindo at 1.1 million units. The sales in 2013 were the highest ever recorded by Gaikindo.

In 2014 the target for car sales is set at 1.25 million units. The target is calculated on a number of factors including oil price in the world market, increase in labor cost, increase in electric tariff and gas for industry, etc.

The domestic car market is predicted to continue to be dominated by Toyota. In the first 11 months of 2013, car sales reach 1,132,130 units with Toyota accounting for 399,414 units, or 35.3% of the total domestic sales, followed by Daihatsu with sales of 171,195 units (15.1%), Suzuki 148,967 units (13,2%), Mitsubishi 145,371 units (12.8%) and Honda 86,817 units (7.7%).

Business In Car Finance Dominated By Car Making Company Groups

Around 90% of purchases of cars both brand new cars and used cars are financed with credits for finance companies or banks. Currently business in motor vehicle finance is dominated by companies affiliated to banks and car makers like Astra Group and Indomobil Group.

Nissan Motor Co the producer of Nissan cars, which has in joint venture with PT Indomobil Multi Jasa with a share split of 75% and 25% respectively, by the end of 2013 established a subsidiary PT Nissan Financial Service Indonesia to operate in financing the purchases of Nissan cars and car of its group such as Infiniti and Datsun.

In early 2014 PT Mitra Pinasthika Mustika Tbk combined its subsidiary PT Sasana Artha Finance (SAF) with PT Mitra Pinasthika Mustika Finance (MPMFinance) which also operates in finance business.

Currently PT. Astra Sedaya Finance became a multifinance company with assets the largest in value at Rp31 trillion in 2013. Other players with assets more than Rp5 trillion include Adira Dinamika Multifinance having assets at Rp 30.9.trillion or in second position, followed by Dipo Star Finance with assets valued at Rp 18.3 trillion.

Medium players with assets from Rp1 trillion--Rp. 5 trillion include BCA Finance having assets valued at Rp5.8 trillion, followed by Indomobil Finace Indonesia Rp5.7 trillion and n Mandala Multifinance Rp 4.6 trillion .

Adira Leads In Car Finance In 2013

As a finance company with the second largest in assets Adira Dinamika Multifinance recorded the largest outstanding credit at Rp27 trillion in 2013.

In addition to Adira, there are six other players with outstanding credit more than Rp5 trillion. The companies include Astra Sedaya Finance, which is the second largest finance company with outstanding credit of Rp 24 trillion. Though the largest in assets Astra Sedaya Finance had only outstanding credit of Rp24 trillion or lower than that of Adira Dinamika Multifinance.

Otto Multiartha was third with credits of Rp11.6 trillion. The smallest in this group is Toyota Astra Financial Service with credit of Rp9.4 trillion.

Clipan Finance led among finance companies with outstanding credit of between Rp1 trillion--Rp.5 trillion. Clippan had an outstanding credit of Rp4.8 trillion, followed by Indomobil Finance Indonesia with outstanding credit of Rp4.3 trillion and Mandiri Tunas Finance Rp 4.1 trillion, Mandala Multifinance Rp 3.7 trillion, Finance Indonesia Rp 3.2 trillion, Mitra Pinasthika Mustika Finance Rp 3.2 trillion, Andalan Finance Indonesia Rp2.3 trillion, Sinar Mas Multifinance Rp 2.1 trillion and Verena Multifinance Rp 1.7 trillion.

Credit To Asset Ratio Quite High

The ratio of credits to assets of a multifinance company reflects the performance of the company. The ratios are generally high among finance companies operating in car finance business. The ratios averaged 84.3 percent in 2013, but the ratios vary among the companies.

The ratios among companies with small assets are generally higher. The highest ratio of 94.9 percent was recorded by Wahana Ottomitra Multiartha, which has assets of only Rp5.9 trillion as against 77.4% of Astra Sedaya Finance, which had assets valued at Rp 31 trillion. See the following table.

Capital to Asset Ratios

Generally the ratio of equity capital to assets of multifinance companies operating in car finance in 2012 were relatively good. The ratios averaged 21.3% in 2012. Clipan Finance Indonesia, which had assets at Rp4.9 trillion, recorded the highest ratio of 50.5 percent that year.

Astra Sedaya Finance, which had assets valued at Rp31 trillion had only Rp1.5 trillion in equity capital, therefore, its equity capital to asset ratio was 4.8% that year.

Some of the companies with assets of more than Rp5 trillion had high ratios. BFI Finance Indonesia had an equity capital to assets ratio of 43.6 percent and Sasana Artha Finance had a ratio of 36.2 percent. Sinar Mas Multifinance had a ratio of 33.3 percent, and Buana Finance 31.4 percent.

Most of the finance companies have financial support from financial institutions or banks. BFI Finance is backed up by The Northern Trust, Deutsche Bank AG, Cs Securities Europe Ltd Prime, and Mellon Bank Na S/A Mackenzie, and Adira Dinamika Multifinance is backed up by Bank Danamon as the owner.

Liability to Asset Ratios

The liabilities to assets ratio shows the capacity of a multifinance company to cover its debts with assets. The ratio shows the risk faced and the performance in risk management by the multifinance company. The higher the ratio, the higher the risk of default to be faced.

In 2013, the ratios of liabilities to assets of multifinance companies operating in car finance averaged 77.2 percent.

BFI Finance Indonesia recorded the lowest ratio of 56.4 percent as against Toyota Astra Financial Services with a ratio of 96.9 percent or the highest among the finance companies .

All companies with assets of more than Rp5 trillion, recorded a higher ratio that the average such as. Dipo Star Finance with a ratio of 89.3 percent, Astra Sedaya Finance with a ratio of 85.5 percent or the lowest among this group.

In the group with assets between Rp1 trillion and Rp.5 trillion there were four companies including Clipan Finance Indonesia with a ratio of 49.5%, Sasana Artha Finance with a ratio of 65.5 percent, Sinar Mas Multifinace with a ratio of 66.7 percent and Buana Finance 77.1 percent. Powerful capital backing allows the players to expand business with limited debts.

Adira Dinamika Multifinance Leads in ROA

ROA (return on assets) shows the effectiveness of a company to make profit from its assets. The productivity of the assets of the industry in 2012 and 2013 averaged 9.1%.

Sasana Artha Finance recorded the highest ROA of 45.5 percent, followed by Sinar Mas Multifinance with a ROA of 20 percent with Summit Oto Finance having the lowest ROA at 1.7 percent .

Among the companies with assets of more than Rp5 trillion Indomobil Finance Indonesia recorded a ROA of 15.8 percent, BCA Finance 16.1 percent or above the average and Toyota Astra Financial Services with ROA of 8.7 percent, BFI Finace Indonesia 8.3 percent, Adira Dinamika Multifinance 5.5 percent, Dipo Star Finance 4.3 percent and Astra Sedaya Finance 3.2 percent or below the average.

Those having assets of from Rp 1 trillion--Rp 5 trillion recorded a higher ROA on the average such as Sasana Artha Finance with ROE of 45.4 percent, Sinar Mas Multiartha 20 percent and Verena Multifinance 17.4 percent.

Clipan Finance Indonesia with ROA of 6.4 percent, Mandala Multifinance 5.7 percent, and Multindo Auto Finance 4.2 percent performed below the average.

Wahana Ottomitra Multiartha Has Highest ROE

ROE (return on equity) is a gauge to see the performance of a company in making profit from equity capital. In 2012 and 2013, the ROE of the industry averaged 35.3%.

Wahana Ottomitra Multiartha had the highest ROE at 90.2 percent with Sasana Artha Finance having the lowest ROE at 1.94 percent.

Among companies having assets more than Rp5 trillion recorded ROE above the average. Adira Dinamika Multifinance with equity of Rp 1.7 trillion recorded a ROE of 42.5 percent, Astra Sedaya Finance with equity of Rp1.5 trillion recorded a ROE of 66.7 percent ; Oto Multiartha with a equity of Rp.3.6 trillion had a ROE of 12.5 percent ; Indomobil Finance Indonesia with equity of Rp1 trillion recorded a ROE of 90 percent ; and BCA Finance with equity of Rp1.1 trillion had a ROE of 85 percent.

A Number of Players Seeking Expansion

In 2014, a number of multifinance companies recorded an increase in new booking from the same period in 2013.

The Group of Astra Credit Companies (ACC) which groups five companies -PT Astra Sedaya Finance (ASF), PT Astra Auto Finance, PT Pratama Sedaya Finance, PT Staco Estika Sedaya Finance and PT Swadharma Bhakti Sedaya Finance reported new booking totaling Rp8.65 trillion until April 2014 to help finance the purchases of 55,000 units of cars with brand new cars making up 68%, second hand cars making up 29% and heavy equipment 3%.

ASF accounted for 85% of the new booking recorded by the ACC group. ASF sets target for outstanding credits at Rp 24 trillion by the end of 2014.

PT Adira Dinamika Multi Finance Tbk (Adira Finance) recorded new credits totaling Rp12.9 trillion in the first five months of 2014 or a 10% increase year-onyear. Motorcycle finance accounted for 60% of the credits with car finance accounting for 40%.

Federal International Finance (FIF), which is a subsidiary of Astra Group began to expand operation to car finance. Earlier the company was known as the largest financer for the purchases of motorcycle in the country.

FIF and ACC formed a synergy in car finance, but FIF operates in areas not yet covered by ACC.

In 2013, FIF Group started with financing the purchases of 1,000 units per year for brand new and second hand cars mainly in eastern Indonesia--Kalimantan, Sulawesi, Maluku and Papua, while ACC already financed the purchases of 10,000 units of cars per months.

PT Toyota Astra Financial Services (TAF) set target for financing the purchases of motor vehicles with a credit of Rp 10.5 trillion in 2014 or an increase of 10.5% from Rp 9.36 trillion in 2013.

TAF is a subsidiary of the Astra Group, but it also offers to finance the purchases of cars other than Toyota, Daihatsu and Isuzu, the products of the Astra Group.

TAF also offer sharia finance starting November 2013 as the system based on Islamic rule has shown an encouraging prospect in this predominantly Muslim country. By the end of 2013, TAF reported financing the purchases of 61,400 units of cars including second hand cars other than Toyota making up almost 5%.

Players Strengthening Business in Second Hand Car Finance

The interest margins are 5% for brand new car credits and 10% for second hand car credits. The profit, therefore, is much higher from business in financing the purchases of second hand cars. The business in financing second hand cars is stable to follow the trend of demand for new cars.

It is predicted that sales of second hand cars in 2014 would reach 35,000-40,000 units, or 11.1 percent lower than last year's record of 45,000 units. The prediction is based on the launch of the LCGC.

In Jakarta, there are a number of market centers of used cars such as WTC Mangga Dua, and Pusat Mobil Kemayoran.

Multi purpose vehicle (MPV) such as Toyota Avanza, Daihatsu Xenia, and Kijang Innova still dominate second hand car sales, accounting for 70% of the total sales. Toyota products are dominated by Avanza.

ACC of the Astra Group has opened second hand car centers--Sentra Mobil Bekas ACC--in Surabaya operating since April 2014. ACC plans to open more such centers in other big cities the country.

In the first quarter of 2014, ACC reported Rp8.65 trillion in new car finance for more than 55,000 units of motor vehicles, both brand new or second hand cars with new cars accounting for 68%, second hand cars 29%, and heavy equipment 3%.

ACC already recorded Rp404 billion in new booking for 3,300 units of vehicles from its Surabaya market in the first quarter of 2014. The units included 834 second hand cars worth Rp84 billion.

The consumers of second hand cars are offered facility that they could have their car, if damaged in accident, repaired at the Garda Center in the Sentra Mobil Bekas ACC in BG Junction. The consumers are also offered bank service from Bank Permata.

PT Adira Dinamika Multi Finance Tbk plans to issue bonds in 2014 to finance business expansion that is estimated to cost Rp5 trillion. In 2013, it reported a 20% increase in net profit to Rp1.7 trillion year-on-year.

Andalan Finance sets target for second hand car finance at Rp3.5 trillion by the end of 2014. Meanwhile, BFI Finance also has set target for car finance at Rp9.3 trillion in 2014 including second hand car finance to make up 70%.

HD Finance's target for car finance is set at Rp 1.63 trillion until the end of 2014, including second hand car finance to make up 5%.

Conclusion

Car finance both for brand new and second hand cars still dominate business in consumer finance. Around 80% of car sold in the country are purchased with credits of consumer finance.

Car finance business grew in 2013 to follow the growing market demand for cars. The growing demand boosted production as shown in the data at Gaikindo. Car sales, according to Gaikindo have increased from year to year to reach 1.22 million units in 2013 or an increase of 10.2% from 1.11 million units in the year before. In 2014, car sales are forecast to rise further to 1.25 million units .

The market of car finance is dominated by a few big players which are generally affiliated to banks or financial agencies, car makers and distributors in Indonesia. Astra Sedaya Finance and Toyota Astra Financial Service, for example, are affiliated to and backed up by Astra Group, which also has business unit in the banking and automotive industries. Indomobil Finance Indonesia of the Indomobil Group is affiliated to an automotive industry. Adira Dinamika Multifinance is owned by a lender Bank Danamon.
Table--24
Car production of Indonesia, 2010-2014

Year                 Production (million units)   Growth (%)

2010                          702,508                --
2011                          837,948                19.3
2012                         1,065,557               27.2
2013                         1,172,,958              10.1
2014 *                       1,290,254               10.0
Growth on average                                    16.7

Source : Gaikindo

Note : * estimate

Table--25
Car sales in Indonesia, 2010-2014

Year               Sales (units)   Growth (%)

2010                  764,710          --
2011                  894,164          16.9
2012                 1,116,230         24.8
2013                 1,229,904         10.2
2014*                1,250,000         1.7
Average growth                         13.4

Source : Gaikindo

Note : * estimate

Table--26
Assets of multifinance operating in car finance in Indonesia
2013

Players                            Assets (Rp trillion)

Astra Sedaya Finance                       31.0
Adira Dinamika Multifinance                30.9
Dipo Star Finance                        18.9 **
Oto Multiartha                             14.0
Toyota Astra Financial Services            12.7
Summit Oto Finance                         8.9
BFI Finance                                7.7
BCA Finance                                5.8
Indomobil Finance Indonesia               5.7 *
Mandala Multifinance                      4.6 **
Mandiri Tunas Finance                     4.3 **
Wahana Ottomitra Multiartha                3.9
Mitra Pinasthika Mustika Finance          3.0 **
Verena Oto Finance                         2.1
Multindo Auto Finance                      2.0
Pro Car International Finance             1.8 **
Multindo Auto Finance                     1.8 **
ITC Auto Multifinance                     1 4 **
Astra Auto Finance                        1.3 **
Armada Finance                             1.3
Batavia Prosperindo Finance              0.529 **
Astrido Pacific Finance                  0.321 **
Staco Estika Sedaya Finance              0.316 **
Otomas Multifinance                      0.228 **
Mega Auto Finance                         0.204
Pratama Sedaya Finance                   0.24 **

Source : Data Consult, processed

Note : * until June 2013, ** December 2012

Table--27
Car finance companies and outstanding credits, 2013

Car Finance Companies                       Credit (Rp trillion)

Outstanding credit more than Rp5 trillion
Adira Dinamika Multifinance                         27.0
Astra Sedaya Finance                                24.0
Dipo Star Finace                                   16.7 *
Otto Multiartha                                    11.6 *
Toyota Astra Financial Services                     9.4
BFI Finance                                         8.9
BCA Finance                                         5.2
Wahana Ottomitra Multiartha                         5.6
Credits Rp.1 trillion--Rp.5 trillion
Clipan Finance                                     4.8 *
Indomobil Finance Indonesia                        2.8 **
Mandiri Tunas Finance                              4.1 *
Mandala Multifinance                               3.7 *
Mitra Pinasthika Mustika Finance                    3.2
Andalan Finance Indonesia                           2.3
Sinar Mas Multifinance                              2.1
Verena Multifinance                                 1.7

Source: ICN

Note : * December 2012, ** June 2013

Table--28
Ratios of credits to assets of multifinance companies operating
in car finance in Indonesia 2013

Players                            Total assets     Outstanding credits
                                   (Rp trillion)      (Rp trillion)

Astra Sedaya Finance                    31.0               24.0
Adira Dinamika Multifinance             30.9               27.0
Dipo Star Finance*                      18.9               16.7
Oto Multiartha*                         12.6               11.6
Toyota Astra Financial Services         12.7                9.4
Summit Oto Finance*                     9.4                 8.2
BFI Finance Indonesia*                  6.6                 5.9
BCA Finance                             5.8                 5.2
Wahana Ottomitra Multiartha             5.9                 5.6
Clipan Finance Indonesia                4.9*                4.5
Indomobil Finace Indonesia**            5.7                 2.8
Mandala Multifinance*                   4.1                 3.7
Buana Finance Tbk                       3.5                 2.6
Mitra Pinasthika Mustika Finance        3.4                 3.2
Sinar Mas Multifinance                  3.0                 2.1
Andalan Finance Indonesia*              2.3                 1.9
Verena Multifinance                     2.1                 1.7
Multindo Auto Finance*                  1.8                 1.6
Sasana Artha Finance                    1.4                 1.3
Artha Prima Finance*                    1.3                 1.2
Armada Finance                          1.2                 1.0
Average ratio

Players                             Credit to
                                   assets ratio

Astra Sedaya Finance                   77.4
Adira Dinamika Multifinance            87.4
Dipo Star Finance*                     88.4
Oto Multiartha*                        92.1
Toyota Astra Financial Services        73.7
Summit Oto Finance*                    87.2
BFI Finance Indonesia*                 89.4
BCA Finance                            89.7
Wahana Ottomitra Multiartha            94.9
Clipan Finance Indonesia               91.8
Indomobil Finace Indonesia**           49.1
Mandala Multifinance*                  90.2
Buana Finance Tbk                      74.3
Mitra Pinasthika Mustika Finance       94.1
Sinar Mas Multifinance                 70.0
Andalan Finance Indonesia*             82.6
Verena Multifinance                    80.9
Multindo Auto Finance*                 88.9
Sasana Artha Finance                   92.9
Artha Prima Finance*                   92.3
Armada Finance                         83.3
Average ratio                          84.3

Source: Data Consult

Note : * December 2012, ** June 2013

Table--29
Solvability of multifinance companies operating
in car finance in Indonesia, 2012

Players                                 Asset           Equity
                                     (Rp trillion)   (Rp.trillion)

Astra Sedaya Finance                     31.0             1.5
Adira Dinamika Multifinance              30.9             4.0
Dipo Star Finance *                      18.9             2.0
Oto Multiartha *                         12.6             3.6
Toyota Astra Financial Services          12.7             1.6
Summit Oto Finance *                      9.4             2.9
BFI Finance Indonesia *                   6.6            2.9*
BCA Finance                               5.8             1.1
Wahana Ottomitra Multiartha               5.9            0.488
Indomobil Finace Indonesia **             5.7             1.0
Clipan Finance Indonesia *                4.9             2.4
Mandala Multifinance *                    4.1            0.88
Buana Finance Tbk                         3.5             1.1
Mitra Pinasthika Mustika Finance *        3.0            0.43
Sinar Mas Multifinance                    3.0             1.0
Andalan Finance Indonesia *               2.3            0.25
Verena Multifinance *                     1.9            0.218
Multindo Auto Finance *                   1.8            0.32
Sasana Artha Finance *                    1.1            0.398
Artha Prima Finance *                     1.3            0.19
Armada Finance *                          1.2            0.210
Average ratio

Players                              Equity to asset
                                           ratio

Astra Sedaya Finance                        4.8
Adira Dinamika Multifinance                12.9
Dipo Star Finance *                        10.7
Oto Multiartha *                           28.5
Toyota Astra Financial Services            12.6
Summit Oto Finance *                       31.4
BFI Finance Indonesia *                    43.6
BCA Finance                                18.9
Wahana Ottomitra Multiartha                 8.2
Indomobil Finace Indonesia **              17.5
Clipan Finance Indonesia *                 50.5
Mandala Multifinance *                     21.7
Buana Finance Tbk                          31.4
Mitra Pinasthika Mustika Finance *         14.5
Sinar Mas Multifinance                     33.3
Andalan Finance Indonesia *                11.2
Verena Multifinance *                      10.3
Multindo Auto Finance *                    17.8
Sasana Artha Finance *                     36.2
Artha Prima Finance *                      14.6
Armada Finance *                           17.5
Average ratio                              21.3

Source : ICN processed

Note : *December 2012, ** June 2013

Table--30
Liabilities to assets ratios of multifinance operating
in car finance in Indonesia, 2013

Players                                 Assets         Liabilities
                                     (Rp. trillion)   (Rp. trillion)

Astra Sedaya Finance                      31.0             26.5
Adira Dinamika Multifinance               30.9             24.9
Dipo Star Finance *                       18.9             16.9
Oto Multiartha                            12.6             9.1
Toyota Astra Financial Services           12.7             12.3
Summit Oto Finance *                      9.4              6.5
BFI Finance Indonesia *                   6.6              3.7
BCA Finance                               5.8              4.7
Wahana Ottomitra Multiartha               5.9              3.5
Indomobil Finace Indonesia **             5.7              4.6
Clipan Finance Indonesia *                4.9              2.4
Mandala Multifinance *                    4.1              3.2
Buana Finance Tbk                         3.5              2.7
Mitra Pinasthika Mustika Finance *        3.0              2.6
Sinar Mas Multifinance                    3.0              2.0
Andalan Finance Indonesia *               2.3              1.9
Verena Multifinance *                     1.9              1.7
Multindo Auto Finance *                   1.8              1.5
Sasana Artha Finance *                    1.1             0.721
Artha Prima Finance *                     1.3              1.2
Armada Finance *                          1.2              1.0
Average

Players                                Debt to
                                     asset ratios

Astra Sedaya Finance                     85.5
Adira Dinamika Multifinance              80.6
Dipo Star Finance *                      89.3
Oto Multiartha                           71.6
Toyota Astra Financial Services          96.9
Summit Oto Finance *                     68.6
BFI Finance Indonesia *                  56.4
BCA Finance                              81.0
Wahana Ottomitra Multiartha              59.3
Indomobil Finace Indonesia **            80.7
Clipan Finance Indonesia *               49.5
Mandala Multifinance *                   78.1
Buana Finance Tbk                        77.1
Mitra Pinasthika Mustika Finance *       85.5
Sinar Mas Multifinance                   66.7
Andalan Finance Indonesia *              88.8
Verena Multifinance *                    89.5
Multindo Auto Finance *                  82.2
Sasana Artha Finance *                   65.5
Artha Prima Finance *                    85.4
Armada Finance *                         83.3
Average                                  77.2

Source : ICN processed

Note : * December 2012, ** June 2013

Table--31
ROA of multifinance companies operating in car finance in Indonesia
2013

Players                                 Assets          Profit
                                     (Rp trillion)   (Rp. trillion)

Astra Sedaya Finance                     31.0             1.0
Adira Dinamika Multifinance              30.9             1.7
Dipo Star Finance *                      18.9            0.706
Oto Multiartha8                          12.6            0.450
Toyota Astra Financial Services          12.7             1.1
Summit Oto Finance *                      9.4            0.178
BFI Finance Indonesia *                   6.6            0.490
BCA Finance                               5.8            0.935
Wahana Ottomitra Multiartha               5.9             0.44
Indomobil Finace Indonesia **             5.7             0.90
Clipan Finance Indonesia *                4.9            0.332
Mandala Multifinance *                    4.1            0.218
Buana Finance Tbk                         3.5            0.137
Mitra Pinasthika Mustika Finance *        3.0             0.99
Sinar Mas Multifinance                    3.0             0.60
Andalan Finance Indonesia *               2.3             0.36
Verena Multifinance *                     1.9             0.33
Multindo Auto Finance *                   1.8             0.73
Sasana Artha Finance *                    1.1             0.5
Artha Prima Finance *                     1.3             0.39
Armada Finance *                          1.2             0.28
Average

Players                              ROA (%)

Astra Sedaya Finance                   3.2
Adira Dinamika Multifinance            5.5
Dipo Star Finance *                    4.3
Oto Multiartha8                        3.7
Toyota Astra Financial Services        8.7
Summit Oto Finance *                   1.7
BFI Finance Indonesia *                8.3
BCA Finance                           16.1
Wahana Ottomitra Multiartha            7.5
Indomobil Finace Indonesia **         15.8
Clipan Finance Indonesia *             6.9
Mandala Multifinance *                 5.7
Buana Finance Tbk                      3.9
Mitra Pinasthika Mustika Finance *     3.7
Sinar Mas Multifinance                20.0
Andalan Finance Indonesia *            1.8
Verena Multifinance *                 17.4
Multindo Auto Finance *                4.2
Sasana Artha Finance *                45.5
Artha Prima Finance *                  3.2
Armada Finance *                       3.0
Average                                9.1

Source : ICN processed

Note : * December 2012, ** June 2013

Table--32
ROE of multifinance companies operating in car finance in
Indonesia 2012 and 2013

Players                                Equity         Profit
                                     (Rp.billion)   (Rp.billion)

Astra Sedaya Finance                     1.5            1.0
Adira Dinamika Multifinance              4.0            1.7
Dipo Star Finance *                      2.0           0.706
Oto Multiartha *                         3.6           0.450
Toyota Astra Financial Services          1.6            1.1
Summit Oto Finance *                     2.9           0.178
BFI Finance Indonesia *                  2.9           0.490
BCA Finance                              1.1           0.935
Wahana Ottomitra Multiartha             0.488           0.44
Indomobil Finace Indonesia **            1.0            0.90
Clipan Finance Indonesia *               2.4           0.332
Mandala Multifinance *                   0.88          0.218
Buana Finance Tbk                        1.1           0.137
Mitra Pinasthika Mustika Finance *      0.439           0.99
Sinar Mas Multifinance                   1.0            0.60
Andalan Finance Indonesia *             0.251           0.36
Verena Multifinance *                   0.218           0.33
Multindo Auto Finance *                  0.32           0.73
Sasana Artha Finance *                  0.398           -0.5
Artha Prima Finance *                    0.19           0.39
Armada Finance *                        0.210           0.28
Average

Players                              ROE (%)

Astra Sedaya Finance                  66.7
Adira Dinamika Multifinance           42.5
Dipo Star Finance *                   35.3
Oto Multiartha *                      12.5
Toyota Astra Financial Services       68.8
Summit Oto Finance *                   6.1
BFI Finance Indonesia *               16.9
BCA Finance                           85.0
Wahana Ottomitra Multiartha           90.2
Indomobil Finace Indonesia **         90.0
Clipan Finance Indonesia *            13.8
Mandala Multifinance *                24.8
Buana Finance Tbk                     12.5
Mitra Pinasthika Mustika Finance *    25.5
Sinar Mas Multifinance                60.0
Andalan Finance Indonesia *           15.8
Verena Multifinance *                 16.4
Multindo Auto Finance *               24.1
Sasana Artha Finance *                -1.94
Artha Prima Finance *                 21.5
Armada Finance *                      14.5
Average                               35.3

Source: ICN processed

Note : * December 2012, ** June 2013

Table--33
Finance companies offering credits for
the purchases of second hand cars

No      Multifinance companies        Brand new car   Second hand
                                         Finance      Car finance

1       Astra Sedaya Finance             [check]        [check]
2       Adira Dinamika Multifinance      [check]        [check]
3       BCA Finance                      [check]        [check]
4       Sinar Mas Multifinance           [check]        [check]
5       HD Finance                       [check]        [check]
6       BFI Finance                      [check]        [check]
7       Andalan Finance                  [check]        [check]
8       Mandiri Tunas Finance            [check]        [check]
9       Bima Finance                     [check]        [check]
10      Otto Multiartha                  [check]        [check]
11      WOM Finance                      [check]        [check]
        Other

Source : ICN processed
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Title Annotation:OUTLOOK CAR FINANCE INDUSTRY
Comment:Development of business in car finance in Indonesia 2014.(OUTLOOK CAR FINANCE INDUSTRY)
Publication:Indonesian Commercial Newsletter
Geographic Code:9INDO
Date:Apr 1, 2014
Words:4737
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