Current IssueThe financing business has grown fast in the country in the past three years despite a ...

1. Multi-finance industry brighter. - Free Online Library
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has grown fast in the country in the past three years despite a slow down slightly in 2009. The
sluggish growth in 2009 followed the global financial crisis. The Indonesian Association of Financing
Firm (APPI APPI American Psychiatric Publishing, Inc.
APPI American Psychiatric Publishing Inc.
APPI American Psychiatric Press, Inc.
APPI Atmospheric Pressure Photoionization
APPI Advanced Peer-to-Peer Internetworking
APPI Advanced Plant Pharmaceuticals Inc. ) said the industry has expanded 17.4% annually in the
past five years.
The expansion of multi-finance industry is attributable to improved economic condition of the
country. The cut in benchmark interest rate Benchmark interest rate
Also called base interest rate, it is the minimum interest rate investors will demand for investing in a
non-Treasury security. It is also tied to the yield to maturity offered on the comparable-maturity
treasury security that was most recently issued (on-the-run). Â of Bank Indonesia Bank Indonesia is
the central bank of Indonesia. Its current governor is Burhanuddin Abdullah. History
Bank Indonesia was founded on July 1, 1953, in the Sukarno era - from the nationalization of De

2. Javasche Bank, a Dutch bank dating from colonial times. Â (BI Rate) to a record low of 6.5%, which
has been maintained since end of multi-finance industry. The expansion has been driven by leasing
and consumer finance (credits for the purchases of cars and motorcycles), which account for 95% of
the total value of non banking financing business in the country.
Consumer finance and leasing strongly dominated financing industry in the country until 2009. The
industry has become part of the motorcycles driving sales of cars, motorcycles and heavy equipment.
Almost 80% of the purchases of automotive products are finance with credits largely provided by
multi-finance companies. APPI estimated credits for the purchases of brand new cars and
motorcycles could reach Rp110 trillion One thousand times one billion, which is 1, followed by 12
zeros, or 10 to the 12th power. See space/time.
(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.
In the USA and Canada, 10^12.
 in 2010. The value of transactions with factoring and credit cards are not yet popular in the
country.
Based on data from Bank Indonesia (BI) in 2009, the total value of financing reached Rp137.2 trillion
or an increase of 4.3% from the previous year's figure of Rp131.6 trillion. Consumer finance made
up Rp90.3 trillion or 65.78% of the total financing with leasing contributing 31.67% or Rp43.3
trillion. The expansion of multi-finance business followed the country's economic development,
which has been driven mainly by the consumption sector. The assets of multi-finance industry grew
fast to reach a total value of Rp174 trillion in 2009--up from Rp168.4 trillion, in 2008 or an increase
of 3.3% in a year.
However, from 2009 to mid 2010, the operating licenses of a number of multi-finance companies had
been revoked by the finance ministry over violation of regulation and failure to meet requirements.
The companies include PT. Tridana Pratama Finance, PT. Primarindo Finance Corp, PT. Inti Karya
Karya may refer to places in Greece:
Karya, Larissa, a community in Larissa prefecture
Karya, Lefkada, a municipality in Lefkada prefecture
 Megah Finance, PT. Grand Pacific Tamara TAMARA There Are Many and Real Alternatives , PT.
Artha Artha (Devanagari: ????) is a Sanskrit term meaning "purpose, cause, motive, meaning,
notion".
http://www.tennessean.com/section/BUSINESS/
It may refer to the idea of material prosperity. In Hinduism, artha is one of the four goals of life,
known as purusharthas.
 Sedaya Finance, PT. Primadana Putra PUTRA Projek Usahasama Transit Ringan Automatik Sdn
Bhd (Malaysia)Â Â Finance, PT. Mandiri Intifinance, etc. On the other hand a number of new
companies have secured license such as PT Anugerah Buana Central Multifinance, PT Hitachi
Construction Machinery Finance Indonesia Indonesia (?n'd?n?`zh?), officially Republic of
Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the
Malay Archipelago. , etc.

3. Multi-finance Products and Services
Multi-finance Industry in Indonesia is under the supervision of the Bureau of Financing and
Guarantee of the Capital Market and Financial Institution Supervision (Bapepam LK), of the finance
ministry.
Multi-finance financing include includes leasing, factoring), consumer financing and credit card
financing.
Leasing
Leasing is used by the lessees for a certain period with payments regularly and periodically. After
the period is over the lessee One who rents real property or Personal Property from another.
A lessee of land is a tenant. Cross-references
Landlord and Tenant.
lessee n. the person renting property under a written lease from the owner (lessor).
 could buy the goods or extend the leasing period based on the remaining value agreed by both
sides.
Factoring financing
Under the financing system of factoring one party takes over short term debts or claims of a
company made in trade transactions.
Consumer financing (consumer credits)
Consumer financing is credit for the procurement The fancy word for "purchasing." The
procurement department within an organization manages all the major purchases. Â of goods or
services to be repaid by installments in a certain period.
Credit card financing
Credit card financing is a system of financing procurement of goods or service using credit card.
Development of multi-finance companies
Number of companies
The number of multi-finance companies decline din DIN - Deutsche Institut fuer Normung. The
German standardisation body, a member of ISO. Â 2007 when a number of them were suspended
sus·pend Â
v. sus·pend·ed, sus·pend·ing, sus·pends
v.tr.

4. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a
student from school. Â for failure to meet requirements such as minimum capital and failure in
publishing financial reports.
In addition to suspension of companies, the decline in the number of multi-finance companies also
was caused by mergers among some of them, change in core business and bankruptcy
bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially
unable to meet financial obligations. The purposes are to distribute, through a court-appointed
receiver, the bankrupt's assets equitably among creditors and, in most . Small multi-finance could
not survive because of the sharp competition in this sector.
The capital market and financial institution watchdog has tighten the regulation on licensing
procedure for multi-finance business. Based on the regulation of the finance minister (PMK PMK
Pairwise Master Key (wireless protocol security mechanism)
PMK Pattali Makkal Katchi (political party in India)
PMK Postmark
PMK Popular Mechanics for Kids
PMK Person Most Knowledgeable ) No. 84/ 2006 on Financing Firms, paid up capital or basic saving
that has to be paid by a multi-finance company is at least Rp100 billion to prevent the license from
being sold as a trade commodity.
However, the number of financing companies declined. From January January:Â see month. Â to
August 2009, Bapepam-LK revoked the license of 10 financing companies. The number was reduced
from 217 companies in 2007 to 212 in August 2009 and by the end of that year the number shrank
shrank Â
v.
A past tense of shrink.
shrank
Verb
a past tense of shrink
shrank shrink  further to 198 because of the revocation The recall of some power or authority that
has been granted.
Revocation by the act of a party is intentional and voluntary, such as when a person cancels a Power
of Attorney that he has given or a will that he has written. Â of license.
In the first half of 2010, around 10 more companies were revoked their license for violation of
regulation. There were, however, six new companies licensed. The number of multi-finance
companies operating until the end of the first half of 2010 was 194 companies.
Multi-finance based on type of business

5. Around 54.6% 106 of the multi-finance companies are consumer financers. Leasing companies make
up 63 companies or 32.5% and factoring companies 23 units (11.9%).
Credit card business has not grown as expected. There are only two credit card companies as
companies operating in credit card service have to compete sharply against banks, which dominate
the business in the country. Based on data at BI, there are 21 banks including state, private and
foreign banks issuing credit cards in the country.
There are three multi-finance companies having three core businesses such as Buana Finance, which
offers leasing, consumer financing and factoring financing services.
Among major multi-finance companies are PT. Federal International Finance and PT. Adira Dinamika
Multifinance.
Revocation of licenses of companies
In 2009 through mid 2010, the finance ministry cracked down on multi-finance companies failing to
comply with the regulation of the finance minister No. 84/2006 on financing business. Their
operations were suspended and finally their licenses were revoked.
The expansion of the consumption sector has encouraged the establishment of new multi-finance
companies. After the government offered new operating license in 2006, many new companies have
emerged. However, many of the new companies failed to effectively operate.
In 2009, the government cancelled the license of a number of companies including PT Tridana
Pratama Finance, PT Primarindo Finance Corporation, PT Inti Karya Megah Finance, PT Sahabat
Multifinance, PT Grand Pacific Tamara, and PT Duta Kirana Finance Tbk TBK - Tool Builder Kit .
In the first half of 2010, the finance ministry revoked the license of more companies including PT
Artha Sedaya Finance, PT Mandiri Intifinance, and PT Primadana Putra Finance for failure to comply
with the regulation.
The operating license of PT Mandiri Intifinance was canceled on 19 January 2010 as it changed its
business line. On January 28, 2010, the license of PT. Artha Sedaya Finance was revoked as it was
merged with another multi-finance company.
In March 2010, the license of PT Primadana Putra Finance was cancelled after being suspended on
25 November November:Â see month. Â 2009. In April 2010, the license of PT Hana Risjad Finance
was revoked, followed with the revocation of the license of PT Sarijaya Multidana on 7 June 2010.
The license of PT SMBC SMBC Sumitomo-Mitsui Banking Corporation
SMBC Stockport Metropolitan Borough Council (UK)
SMBC South Main Baptist Church
SMBC Single Mother by Choice
SMBC Stowe Mountain Bike Club (Stowe, VT)Â Â Indonesia Finance was also revoked on 7 June
2010.
The revocation of the licenses of PT Ometraco Multiartha (formerly PT Lestari Aneka Finance) PT

6. Alindo Internusa Finance and PT Perdana Cipta Finance followed in the same month.
The companies have their licenses revoked for violation of regulation such as offering credits more
than 40% of their assets and they failed to submit audited financial reports. Some of them have no
clear addresses and some changed their license of business.
The imposition The printing of pages on a single sheet of paper in a particular order so that they
come out in the correct sequence when cut and folded. Â of the ministerial Done under the direction
of a supervisor; not involving discretion or policymaking.
Ministerial describes an act or a function that conforms to an instruction or a prescribed procedure.
It connotes obedience. Â regulation PMK No. 84/ 2006 resulted in the closure of a number of
companies for failing to meet the new minimum capital requirement. A multi-finance company with
the status of limited company (PT) , is required to have a paid up capital of Rp100 billion and the
minimum paid up capital for a cooperative is Rp50 billion.
Adjustment has to be made in capital if there is change in the shareholders. The new regulation is
apparently discouraged dis·cour·age Â
tr.v. dis·cour·aged, dis·cour·ag·ing, dis·cour·ag·es
1. To deprive of confidence, hope, or spirit.
2. To hamper by discouraging; deter.
3. Â new investors in the business sector as there are not many proposals submitted for new license.
Under the previous regulation, the minimum capital was set only at Rp10 billion for a PT and Rp 5
billion for a cooperative.
In addition to the equity capital of a multi-finance company is set at least 50% of the paid up capital.
New licenses
Meanwhile, the regulator regulator,
http://dictionary.reference.com/browse/BUSINESS
n the mechanical part of a gas delivery system that controls gas pressure that allows a manageable
flow of drug vapor to escape.
regulator
see reducing valve. Â has also issued new licenses also. In 2009, a new license was issued for two
companies PT Hitachi Construction Machinery Finance Indonesia in January and PT Anugerah
Buana Central Multi-finance in September 2009.
In the first half of 2010, new licenses were issued for four companies PT Jasra International Multi-
finance, PT Sarana Global Finance Indonesia, PT PPA PPAÂ 1. Palpation, Percussion & Ausculation
2. Pittsburgh pneumonia agent 3. Postpartum amenorrhea 4. Price per accession 5. Pure pulmonary
atresia  Finance, and PT SMFL Leasing Indonesia.
So far in the second half of 2010, there were two companies licensed PT Central Sentosa Finance,

7. which is owned by PT BCA Finance and PT IBJ IBJ Industrial Bank of Japan, Ltd.
IBJ Illinois Business Journal
IBJ International Brotherhood of Jones  Verena Finance, which is a joint venture between PT
Verena Oto Finance Tbk and IBJ Leasing Co Ltd.
Multi-finance companies by status
Most or 150 of the multi-finance companies are Indonesian private companies and 47 other are
foreign joint venture companies with only one state company PT. PANN PANN Professional
Association of Nursery Nurses
Pann Pannonian (linguistics)Â Â Multi-finance.
Joint venture companies are financially powerful with support from their principals such as Japanese
principals.
Ownership of multi-finance companies
The status of the owners of multi-finance companies include banks, affiliate in a company group,
auto brand holding sole agent (ATPM ATPM About This Particular Macintosh (Macintosh computing
e-zine)
ATPM Association of Teachers of Preventive Medicine
ATPM All the Presidents Men (book/movie)Â ) and foreign principals operating in financial services
The examples and perspective in this article or section may not represent a worldwide view of the
subject.
Please [ improve this article] or discuss the issue on the talk page. . Those affiliated to banks or car
producers or ATPM are generally more powerful.
Many auto ATPMs seek to team up with financing firms even established their multi-finance
company to help boost their sales. The Astra Group, which is the ATPM for Toyota, Daihatsu and
Isuzu cars and Honda motorcycles Honda Motorcycles and scooters by engine size
50cc
Aero 50 (NB50)
CB50
Cub (C100)
Cub (C50)
Chaly (CF 50)
CRF 50
CT 50
Dream 50R
Elite 50 LX (SA50)
Elite E (SB50)
Elsinore (MR50)
Express (NC50)

8. Â , has Astra Sedaya Finance, Toyota Astra Finance offering financing service for the purchases of
cars and Federal International Finance which offers credits for the purchases of motorcycles).
The Indomobil Group has financing firms--Indomobil Finance Indonesia for car purchases and Suzuki
Finance Indonesia financing the purchases of Suzuki motorcycles.
Banks have the largest number of multi-finance companies. Bank Panin has the largest number of
three multi-finance subsidiaries Clipan Finance, DKB DKB Dürener Kreisbahn (German)
DKB Dresdner Kleinwort Benson
DKB Dancers Kick Butt
DKB Daichi Kaigin Bank
DKB Device Key Block  Panin Finance and Verena Oto Finance.
Main players
Big players in consumer financing
Consumer financing service has been dominated by credits for the purchases of car and motorcycles.
There are credits for the purchases of household electronic goods such as TV sets, refrigerators, AC,
washing machines, and DVD DVD:Â see digital versatile disc.
DVD
 in full digital video disc or digital versatile disc
Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology.
 players.
Among big players in consumer financing business is:
Federal International Finance (FIF (Fractal Image Format) A graphics file format from content
management company Interwoven, Inc. San Jose, CA (www.interwoven.com) that stores fractal
images with compression ratios as high as 2,500:1. FIF was originally from MediaBin, Inc. )-
-established in 1989 with the name of PT. Mitrapusaka Artha Finance. In 1991, it was renamed PT.
Federal International Finance (FIF). It is controlled by PT. Astra International Astra International is
an important international industrial conglomerate based in Indonesia. It is involved in auto
production and sales among other things. It is the sponsor of a technical university in Jakarta named
Astra Manufacturing Polytechnic (Polman). Â of the Astra Group. FIF offers credits for the purchases
of Honda motorcycles, which are produced by PT. Astra Honda Motorcycles, a subsidiary of the
Astra Group. Later FIF expanded its operation to offering credits for the purchases of household
electronic products through FIF Spektra and sharia financing through FIF Syariah. FIF has financial
support from Bank Permata, which is also a subsidiary the Astra Group.
Astra Sedaya Finance (ASF See Windows Media formats.

9. 1. (language) ASF - Algebraic Specification Language.
2. (body) ASF - Analytical Solutions Forum. )--established in 1982 with the name of PT. Rahardja
Sedaya. Its named was changed with Astra Sedaya Finance after it was taken over by Astra
International, the holding of the Astra Group in 1992. ASF became an investment holding for a
number of subsidiaries including Astra Auto Finance, Estetika Sedaya Finance, Stacomitra Sedaya
Finance and Swadharma Bhakti bhakti (b?k`t?) [Skt.,=devotion], theistic devotion in Hinduism.
Bhakti cults seem to have existed from the earliest times, but they gained strength in the first
millennium A.D. Â Sedaya Finance. The financing companies are all under Astra Credit Company
(ACC See adaptive cruise control. ) which offer credits for the purchases of cars produced or
assembled as·sem·ble Â
v. as·sem·bled, as·sem·bling, as·sem·bles
v.tr.
1. To bring or call together into a group or whole: assembled the jury.
2.
 by the Astra Group including Toyota, Daihatsu, Isuzu, BMW BMW
 in full Bayerische Motoren Werke AG
German automaker. Founded as an aircraft engine manufacturer in 1916, the company assumed the
name Bayerische Motoren Werke and became known for its high-speed motorcycles in the 1920s.
, Peugeot and Nissan Diesel trucks.
ASF plans to issue bonds valued at Rp1.5 trillion in 2011 to strengthen its financing capacity. In
February, the company already issued bond valued at Rp 1.5 trillion. In 2010, ASF hopes to extend
Rp 18.5 trillion in credits for the motor vehicle financing.
General Electric Capital Corporation has sold its 47% stake in ASF to PT. Astra Internasional Tbk
(ASH). With the deal PT. Astra International, which previously owned 53% of ASF, became the sole
owner of ASF. The purchase of the entire shares of GE Finance Indonesia from General Electric
Capital International Holdings Corporation by Bank Permata Tbk, which is a subsidiary of Astra
International, also took place in September 2010. The take over of the entire shares of GE is to
speed up expansion of ASF.
Bussan Auto Finance (BAF BAFÂ British Athletics Federation ) started operation in 1997. Originally
the company was named Danamon Mitsui Otomotif Finance, with PT. Danamon Sanggrahan and
Mitsui Co Ltd of Japan as the shareholders. In 1998, Danamon quit as a shareholder and later the
name of the company was changed with Bussan Auto Finance. Currently the company is 75% owned
by Mitsui Corp, 15% by PT. Mitsui Indonesia, 7% by Yamaha Motorcycles Co. Ltd and 3% by PT.
Yamaha Motorcycles Kencana Indonesia.
BAF offers credits for the purchases of Yamaha motorcycles.
Oto Multiartha was established in 1994 with the name of Manunggal Multi Finance. In 1995, it was
renamed Oto Multiartha. In 1996, Sumitomo Corp of Japan took over the majority shares of the

10. company. Oto offers credits for the purchases of cars. Its sister company Summit Oto Finance
provides credits for the purchases of motorcycles.
Wahana Otomitra Multiartha (WOM WOM - write-only memory ) was established in 1982 with the
name of PT. Jakarta Tokyo Leasing by PT. Fuji Semeru Leasing. In 1997, Bank International
Indonesia (BII BII Bank Internasional Indonesia
BII British Institute of Innkeepers
BII Bioindustry Initiative (US Department of State)
BII Bronco II (Ford truck; predecessor of the Explorer)
BII Basic Issue Item ) acquired 50.03% of the shares of the company and its name was changed with
Wahana Otomitra Multiartha.
WOM offers credits only for the purchases of motorcycles including Honda honda
a quick release metal eyelet for the end of a lariat. When the restrained animal is no longer required
it is not necessary to slacken off the loop and pull it over the head--a very great advantage when
working with wild cattle or unbroken horses. , Yamaha and Suzuki, which dominate the domestic
market.
Buana Finance (BF) was established in 1982.with shareholders including PT. Sari Dasa Karsa
(67.60%), PT. Asuransi Bina Dana Arta Tbk (8.05%) and the public (24.35%). In 2010, BF plans to
increase the portion of consumer financing. Currently BF focuses more on financing the purchases
of used cars for which financing the competition is not as sharp as in the market of new car
financing.
Until June, 2010, financing by BF include leasing accounting for 58%, consumer financing for 36%
and factoring for 6% specially to continue previous consumers (mil An Internet address domain
name for a military agency. See Internet address.
(networking) mil - The top-level domain for entities affiliated with US armed forces. Â over). The
portion of consumer financing rose from 28% in 2009 when leasing was more dominant at 71% with
factoring accounting for the rest. This year the company is set to maintain its new financing
(booking) target at Rp 12 trillion. BF receives financial support from three banks--Bank Panin Tbk,
CIMB CIMB Commerce International Merchant Bankers Berhad
CIMB Current Issues in Molecular Biology (periodical)
CIMB Corporate Information Management Branch (British Columbia, Canada)Â Â Niaga Tbk, and
BCA totaling Rp 400 billion in loan.
PT. Adira Dinamika Finance (ADF (1) (Application Development Facility) An IBM programmer-
oriented mainframe application generator that runs under IMS.
(2) (Automatic Document Feeder) A paper stacker that feeds one sheet of paper at a time into the
unit. ) was established in 1990. Its shareholder now includes Bank Danamon PT Bank Danamon
Indonesia Tbk was established in 1956 under the name of PT Bank Kopra Indonesia, in 1976, the

11. Bank's name was changed to the present name, Bank Danamon Indonesia. Â Indonesia Tbk (95%),
PT. Asuransi Adira Dinamika (0.4%) and investing public (4.6%).
ADF has performed well as shown by its financing value of Rp 14.5.trillion in 2009. In the first half of
2010, it already succeeded in chalking up Rp11.1 trillion in new financing or an increase of 88%
from the same period last year. This year, the company is set to provide new credits valued at Rp20
trillion for the purchases of motor vehicles.
ADF planned to issue bond valued at Rp 1.5 trillion this year with a fixed coupon rate Coupon rate
In bonds, notes, or other fixed income securities, the stated percentage rate of interest, usually paid
twice a year. Â to strengthen its financing capacity. The bond was to consist of four series--Series A
for 18 months, series B for 24 months, series C for 30 months and series D for 36 months. Offering
was to be held from Sept 30 to Oct 13, 2010 and to be listed on the Indonesian Stock Exchange on
Nov. 1. The company named PT Danarekasa Sekuritas, PT HSBC HSBC Hongkong and Shanghai
Banking Corporation
HSBC Humane Society of Broward County (Florida)
HSBC Humane Society of Bay County (Bay County, Michigan)Â Â Securities Indonesia and PT Indo
Premier Securities as the underwriters with PT Bank Negara Indonesia Bank Negara Indonesia,
commonly known known as BNI, is an Indonesian bank. It has branches primarily in Indonesia, but
also in Singapore,Hong Kong,London, and New York. It has 1000 branches and 9 million customers.
 Tbk (BBNI) as the trustee.
Main players in leasing business
Leasing service is generally used to finance the procurement of heavy equipment such as tractors,
loaders, excavators, etc. And capital goods Capital Goods
Any goods used by an organization to produce other goods.
Notes:
Examples of capital goods include office buildings, equipment, and machinery.
See also: Capital Expenditure, Disinvestment
Capital goods  like factory machines. This business is growing to follow the expansion of mining
and construction industries that require larger supply of heavy equipment.
PT. Central Java Central Java (Indonesian: Provinsi Jawa Tengah) is a province of Indonesia. The
administrative capital is Semarang. It is one of the six provinces of the island of Java. Central Java is
both a political entity and a cultural concept. Â Power (CJP CJP Canadian Journal of Psychiatry
CJP Chief Justice of Pakistan
CJP Commission on Judicial Performance (San Francisco, California)
CJP Complete Joint Penetration (welding)Â ) is a subsidiary of state electricity company PT. PLN
PLN

12. In currencies, this is the abbreviation for the Polish Zloty.
Notes:
The currency market, also known as the Foreign Exchange market, is the largest financial market in
the world, with a daily average volume of over US $1 trillion. . In May, 2003, CJP and PLN resumed
the construction of the power plant, PLTU PLTU Pct Line and Trunk Unit  Tanjung Jati Noun 1. jati
- (Hinduism) a Hindu caste or distinctive social group of which there are thousands throughout
India; a special characteristic is often the exclusive occupation of its male members (such as barber
or potter) Â B, at a cost of US$ 1.65 billion after being shelved as a result of the 1998 monetary
crisis. The power plant in Jepara, Central Java, has a capacity of 2x660 MW. The agreement between
CJP and PLN was in the form of leasing (built, lease and transfer). In 2006, CJP (as the lessor One
who rents real property or Personal Property to another.
A lessor of land is a landlord. Cross-references
Landlord and Tenant.
lessor n. the owner of real property who rents it to a lessee pursuant to a written lease.
) handed over the maintenance, power production and sales to PLN as the lessee. The leasing
scheme is for 20 years.
Chandra Sakti Utama Leasing (CSUL CSUL California State University Los Angeles ), which was
established in the 1990s, is a subsidiary of the Trakindo Group as the holding. CSUL offers credit for
the purchase of Caterpillar caterpillar (k?t`?p?l'?r, k?t`?r-), common name for the larva of a moth
or butterfly. Caterpillars have distinct heads and are segmented and wormlike. Â heavy equipment
from the United States United States, officially United States of America, republic (2005 est. pop.
295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's
third largest country in population and the fourth largest country in area. Â with Trakindo as the
local agent. CSUL has branches in Medan, North Sumatra North Sumatra (Indonesian: Sumatera
Utara) is a province of Indonesia. Its capital is Medan. Geography and population
The province of North Sumatra stretches across the island of Sumatra between the Indian Ocean
and the Strait Malacca. Â and in Surabaya, East Java East Java (Indonesian: Jawa Timur) is a
province of Indonesia. It is located on the eastern part of the island of Java and also includes
neighboring Madura and Bawean islands. Â to serve customers in those regions.
Orix Indonesia Finance (ORIF ORIFÂ Open reduction and internal fixation, see there ) was
established in 1975 with the name of PT.Orient o·ri·ent
v.
1. To locate or place in a particular relation to the points of the compass.
2. To align or position with respect to a point or system of reference.
3. Â Bina Usaha Leasing (OBUL). This company is a joint venture between ORIX Corporation (85%)
and Yayasan Kesejahteraan Karyawan (Workers' Welfare Foundation) of Bank Indonesia (15%). ORIF
intends to further strengthen its reputation among customers and promote the idea that ORIF is

13. synonymous with synonymous with
adjective equivalent to, the same as, identical to, similar to, identified with, equal to, tantamount to,
interchangeable with, one and the same as  the best in financial services. ORIF offers credits for
the procurement of heavy equipment, ships, office equipment, industrial equipment and machines,
etc. ORIF also offers credits for the purchases of cars but its business in car financing is relatively
small.
Main players in factoring business
Business in factoring in the country has remained stunted stunt 1 Â
tr.v. stunt·ed, stunt·ing, stunts
To check the growth or development of.
n.
1. One that stunts.
2. One that is stunted.
3. . There has been no significant growth. Few customers have handed over their debts to financing
firms to improve their liquidity. In addition, there are few business players in factoring.
The main players in factoring financing include
* Koexim Mandiri Finance
* Clemont Finance Indonesia Corp
Main players in credit card financing business
Credit card is as a payment for the purchases of goods or services. Based on data from Bank
Indonesia, principals of credit cards that are used in Indonesia include Visa International,
MasterCard International, Diners Diners can mean:
Diners Club International, a credit card company
plural of "diner", see Diner (disambiguation)
 and Amex. The operators of credit cards are 22 issuers including 20 commercial banks and 2
multi-finance companies.
GE Finance Indonesia is a subsidiary of GE Capital, a multinational company with assets exceeding
US$ 425 billion based in the United States. GE Finance issues credit card known as Master Card. GE
Finance also issues other credit cards like Smart Card in cooperation with Source Kredit and Kartu
Belanja in cooperation with Carrefour, a French-based hypermarket hy·per·mar·ket Â
n.
A very large commercial establishment that is a combination of a department store and a

14. supermarket.
hypermarket
Noun
a huge self-service store [translation of French  which has many outlets in Indonesia.
In September 2010, Bank Permata Tbk a subsidiary of Astra International took over 100% of GE
Finance Indonesia from General Electric Capital International Holdings Corporation.
Diner Jaya Indonesia International issues credit card under license of U.S. based Diners Club Diners
Club International, originally founded as Diners Club, is a credit card company formed in 1950 by
Frank X. McNamara, Ralph Schneider and Casey R. Taylor. When it first emerged, it became the
first independent credit card company in the world. . Diners Club credit card in Indonesia is not as
popular as Visa and Master Card.
Performance of multi-finance industry
Multi-finance assets grow 17.1% per year
In the period of 2006-2010, the total assets of multi-finance industry in the country grew 17.1% per
year--from Rp108.9 trillion in 2006 to Rp174 trillion in 2009.
Based on data from Bank Indonesia the assets of multi-finance industry continued to scale up to
reach Rp 201.57 trillion in June 2010 or a 24.5% increase year-n-year. The increase followed a rise
in outstanding credits that reached Rp 163.20 trillion from Rp 131.90 trillion a year earlier.
The growing trend is expected to continue until the end of the year. Financing business is normally
brisker in the second half of a year with religious day and New Year celebrations.
Consumer financing has been the driving force pushing up the growth especially with the continued
rise in demand for cars and motorcycles. In 2009, credits for the car purchases rose from 2008 to Rp
48.7 trillion.
Leasing financing for the procurement of heavy equipment and factory machines contributed
significantly to financing growth.
Multi-finance companies having largest assets
a. Total assets more than Rp 1 trillion
According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Â Bapepam-LK, only 152 multi-finance companies published their financial reports for 2009.

15. Based on the reports, only 35 of the multi-finance companies have assets valued more than Rp1
trillion.
PT. Central Java Power (CJP) is the largest in assets accounting for 15.3% or Rp 26.7 trillion of the
total assets of multi-finance companies in 2009.
CJP, however, has offered credits only for the development of the coal-fired power plant of PLTU
Tanjung Jati.
The second largest is PT. Astra Sedaya Finance (ASF), followed by affiliate PT. Federal International
Finance (FIF) respectively with assets of Rp 9.9 trillion and Rp 9.1 trillion. The two companies are
subsidiaries of the Astra Group respectively offering credits for the purchases of cars and
motorcycles produced by the company group. ASF offers credits only for the purchases of Toyota,
Daihatsu, Isuzu, BMW, Peugeot and Nissan Diesel cars, and FIF for Honda motorcycles.
PT. Bussan Auto Finance (BAF) is the third largest with assets totaling Rp8.3 trillion or a market
share of 4.8%. BAF is a joint venture between Mitsui Corp from Japan with a share of 75%, PT.
Mitsui Indonesia (15%), Yamaha Motorcycles Co. Ltd (7%) and PT. Yamaha Motorcycles Kencana
Indonesia (3%). The company offers credits only for the purchases of Yamaha motorcycles.
b. Total assets below Rp 1 trillion
There are 17 multi-finance companies with assets of less than Rp 1 trillion. With assets of Rp 960.6
billion , PT. Multindo Auto Finance (MAF MAF
macrophage activating factor. ) leads among those having assets below Rp1 trillion. The assets are
around 0.55% of the total Rp 174 trillion assets of the country's multi-finance industry. MAF receives
financial support from Bank Bumi Artha Tbk, a retail bank offering credits mainly to small and
medium businesses.
After MAF is PT. Sunprima Nusantara Pembiayan with assets valued at Rp 837.7 billion (0.48%),
followed by PT. Sasana Artha Finance with assets valued at Rp 832.7 billion (0.47%).
c. Companies with assets less than Rp100 billion
There are 59 companies having assets less than Rp 100 billion. PT. Arjuna Arjuna
One of the five brothers who are the heroes of the Mahabharata. His reluctance to go into battle
prompts Krishna, manifested as his friend and charioteer, to deliver the discourse on duty that
constitutes the Bhagavadgita. Â Finance is the largest among them with assets valued at Rp97.6
billion, or 0.06% of the total Rp 174 trillion assets of the country's multi-finance industry.
After Arjuna is PT. Mashill International Finance with assets of Rp 87.9 billion (0.06%) followed by
PT. Arthabuana Margausaha Finance with assets of Rp 84.1 billion (0.04%).
Financing valued at Rp 175.2 trillion in August 2010
The financing value of the country's multi-finance industry grew 17.5% annually in the 2006-2010
periods. In 2006, the value totaled Rp 93.1 trillion, when the SBI SBI Special Background
Investigation

16. SBI Subsidiary Body for Implementation
SBI State Bank of India
SBI Secure Border Initiative
SBI Small Business Institute
SBI Stockholm Brain Institute
SBI Serious Bacterial Infection
SBI Society of Breast Imaging  rate was 14% with the interest on car financing credit at 24% and
the interest on motorcycle motorcycle, motor vehicle whose design is based on the bicycle. The
German inventor Gottlieb Daimler is generally credited with building the first practical motorcycle in
1885. The motorcycle did not become dependable and popular, however, until after 1900.
 financing credits at 40% a year. The high interest rates slowed the growth of multi-finance
industry. Consumer finance for car and motorcycles accounts for the bulk of the credits issued by
multi-finance industry in the country.
In the following years, the SBI rate was cut gradually to reach 8% in 2007 and the purchasing power
Purchasing Power
1. The value of a currency expressed in terms of the amount of goods or services that one unit of
money can buy. Purchasing power is important because, all else being equal, inflation decreases the
amount of goods or services you'd be able to purchase.
2. Â of the people increased. The interest rate on credit then was reduced to 8% for the purchases of
cars, and 17% for the purchase of motorcycles. The cut in interest rate resulted in a 15.7% growth of
financing credits that reached Rp107.7 trillion by the end of that year. The total value of financing
rose further by 22.2% to Rp 131.6 trillion in 2008. The growth was weakened again in 2009 as a
result of the global financial crisis. In 2009, the outstanding credits grew only 4.3% to Rp 137.2
trillion.
Meanwhile, the central bank continued to cut its key rate to a record low of 6.5% resulting in a
faster growth of the country's multi-finance industry. Based on data form Bank Indonesia, the
financing value of multi-finance industry reached Rp 175.16 trillion by August 2010 or a 27%
increase from a year earlier with consumer financing rose 38.8%,
Federal International Finance has largest financing credits
Federal International Finance (FIF) succeeded in recording Rp 12 trillion in financing value in 2009
or a market share of 8.7%. FIF offers credits only for the purchases of Honda motorcycles and
household electronic goods. The company is set to see an increase in its credits to Rp 15 trillion this
year for 882,000 units of motorcycles or an increase of 13.78% from a year before. Its business is
expected top grow with the leapfrogging Leapfrogging is a theory of development in which
developing countries skip inferior, less efficient, more expensive or more polluting technologies and
industries and move directly to more advanced ones. Â increase in sales of motorcycles in the
country predicted to exceed 7 million units this year.
In April, 2010, FIF issued bonds valued at Rp 1 trillion to strengthen its working capital with

17. underwriters including PT. Danareksa Sekuritas, PT Khresna Graha Sekurindo, PT. Indo Premier
Securities and PT. Mandiri Sekuritas.
In the first half of this year, FIF already recorded financing value at Rp 7.7 trillion for 632,000 units
of brand new motorcycles or an increase of 41% from the same period last year. The company also
offer credits for the purchases of second hand motorcycles. In 2009, its credits for the purchases of
136,000 units of second hand motorcycles totaled Rp 980 billion. The number represented an
increase of 31% from the same period in 2009. Meanwhile, FIF Spektra which offers credits for the
purchases of electronic goods and home appliances recorded new financing valued at Rp 723 billion
or 39% surge from the same period last year.
Most or 70% of credits offered by FIF are in Java, but in the following years, the company hopes to
change the portion more in favor of upon the side of; favorable to; for the advantage of.
See also: favor  outer regions with the growing purchasing power of consumers in the regions
especially as a result of the rise in the price of primary commodities.
Astra Sedya Finance (ASF) recorded the second largest multi-finance credits of Rp 9.1 trillion in
2009 or a portion of 6.6%. ASF offers credits only for the purchases of cars produced by the Astra
Group.
Third in the ranks is Oto Multiartha with credits valued at Rp 8.4 trillion (6.1%) in 2009. This year
Oto hopes to provide Rp 10.5 trillion in new credits with the growing car sales in the country
forecast to reach 700,000 units this year.
NPL 1. NPL - New Programming Language. IBM's original (temporary) name for PL/I, changed due
to conflict with England's "National Physical Laboratory." MPL and MPPL were considered before
settling on PL/I. Sammet 1969, p.542.
2. Â low
The asset of the country's multi-finance industry has grown from year to year and improvement has
also made in coping with non performing loans (NPL). According to APPI, the NPL of multi-finance
industry was expected to be less than 2% by the end of this year. In April 2010, the NPL of multi-
finance industry was 1.81% or Rp 2.84 trillion. The NPL was low with financing credit reaching Rp
157.08 trillion in the same month.
The largest part of NPL was in consumer financing which dominates financing credits. NPL in
consumer financing, which totaled Rp 105.82 trillion was Rp 1.96 trillion or 1.86%. The NPL in
leasing which totaled Rp 48.09 trillion was 1.46% or Rp 701.62 billion.
Meanwhile, in July 2010, the NPL of multi-finance financing which totaled Rp 163.2 trillion was 1.9%
or Rp 2.8 trillion.
Many multi-finance companies have joined in the Debtor One who owes a debt or the performance of
an obligation to another, who is called the creditor; one who may be compelled to pay a claim or
demand; anyone liable on a claim, whether due or to become due. Â Information System that allows
multi-finance companies to detect the track record of their customers.
Consumer financing has largest share of 65.78%

18. In 2009, consumer financing accounted for 65.78% of the total value of Rp 90.3 trillion credits
issued by multi-finance companies. The amount rose 12.6% from Rp 80.2 trillion in the previous
year.
Consumer financing service is mainly for the purchases of motor vehicles. In 2009, car sales totaled
483,000 units and motorcycle sales reached 5.88 million units. More than 80% of consumer
financing credits are for cars and motorcycles, and the rest for electronic goods.
Leasing financing was valued at Rp 43.5 trillion or 31.67%. In the last three years leasing
transactions have tended to increase with the recovery of the corporation sector. Currently, the
mining, construction and manufacturing sectors grow faster requiring larger supply of new heavy
equipment and machines the procurement of which is mostly with leasing credits.
Factoring transactions were recorded only at Rp 1.8 trillion (1.34%) and credit card financing was
even smaller at Rp 0.9 trillion (0.64%), as the credit card business is dominated by banking industry.
By August 2010, outstanding credits of consumer financing totaled Rp 120.55 trillion or an increase
of 38.8% from Rp 86.80 trillion a year earlier. It was 68.8% of the total outstanding credits of multi-
finance industry.
Leasing financing also rose although by a lower rate of 7.2% to Rp 51.62 trillion In August 2010
from Rp 48.15 trillion a year earlier. Factoring financing rose 7.6% to Rp 2.11 trillion from Rp 1.96
trillion. Meanwhile, credit card financing dropped 12% to Rp 870 billion from Rp 989 billion. In July
2010, credit card financing fell in value 14.5% from Rp 999 billion to Rp 854 billion.
Multi-finance companies posting largest profit
Based on financial reports released by Bapepam LK in 2009, the total profit of the country's multi-
finance industry reached Rp7.5 trillion.
Adira Dinamia Multifinance recorded the largest net profit of Rp 1,212.4 billion, followed by Federal
International Finance with profit of Rp812.8 billion and Central Java Power with profit of Rp766.1
billion.
In the first half of 2010, the net profit of 18 companies publishing their financial report grew 43.82%
to Rp 2.24 trillion compared to Rp 1.55 trillion in the same period last year. Companies offering
consumer credits especially for the purchases of motor vehicles dominated the net profit, followed
by leasing companies.
In the first half of 2010, the largest net profit was recorded by PT Federal International Finance
(FIF) at Rp 567.28 billion or an increase of 65.5% from Rp 343.62 billion in the same period last
year. The increase was attributable to growing incomes that reach Rp 2.28 trillion up from Rp 2.08
trillion.
BCA Finance posted a profit of Rp 279.95 billion or an increase of 89.25% from the same period last
year.
Multi-finance companies reporting losses
Based on financial reports issued by the Finance ministry, around 12 multifinance suffered losses in
2009.

19. Swadharma Indotama Finance reported the largest loss of Rp 31.1 billion. Paramitra Multifinance
posted a loss of Rp 8.3 billion and Arjuna Finance Rp 6.9 billion.
Performances of listed multi-finance companies
According to the Indonesian Stock Exchange (IDX (IDX Systems Corporation, South Burlington, VT,
www.idx.com) One of the largest health care information systems companies in the country,
acquired in 2006 by GE Healthcare (www.gehealthcare.com), a unit of the General Electric
Company. ), there are 10 publicly traded multi-finance companies--PT Adira Dinamika Multi Finance,
PT BFI BFI - brute force and ignorance  Finance Tbk, PT Batavia Prosperindo Finance Tbk, PT
Clipan Finance Indonesia Tbk, PT Indo Citra Finance Tbk, PT Mandala mandala (m?n`d?l?),
[Skt.,=circular, round] a concentric diagram having spiritual and ritual significance in Hindu and
Buddhist Tantrism. Â Finance Tbk, PT Trust Finance Indonesia Tbk, PT Verena Oto Finance Tbk,
WOM Finance Tbk and PT Buana Finance Tbk.
In the first quarter of 2010, credits extended by 9 of the companies totaled Rp 10.438 trillion, up
9.70% from Rp 9.515 trillion in the same period in 2009.
The growth rate recorded by the 9 companies was lower than the growth rate of the multi-finance
industry in general as a result of the declining performance of PT BFI Finance Tbk (BFI).
In the first quarter of 2010, financing by BFI totaled Rp 1.944 trillion, shrinking from Rp 2.239
trillion in the same period last year. Its income dropped 10.22% to Rp 215.09 billion from Rp 239.58
billion.
Banks and other financing agencies are the main sources of fund used by multifinance companies.
Bank loans received by the nine listed multi-finance companies in the first quarter of 2010 totaled
Rp 3.64 trillion, down 25.72% from Rp 4.92 trillion in the same period in 2009. On the contrary an
increase of 14.03% was recorded in the total loans of banks and other financial agencies for the
multi-finance industry.
Increase in bank loans was recorded by Adira Dinamika Multifinance to Rp 200 billion from Rp 83.33
billion; by Clipan Finance to Rp 389.62 billion from Rp 332.29 billion, by Indocitra Finance to Rp
6.66 billion from Rp 5.61 billion by Mandala Finance to Rp 1.65 trillion from Rp1.6 trillion by Verena
Oto Finance from Rp 416.06 billion to Rp 463.50 billion.
Meanwhile, decline was recorded by 4 other listed companies--WOM Finance to Rp 153.57 billion
from Rp 716.32 billion; Trust Finance to Rp 56.52 billion from Rp 70.88 billion; by Batavia
Prosperindo Finance to Rp 96.29 billion from Rp 107.75 billion and BFI Finance , which posted the
steepest fall of 60.79% to Rp 622.12 billion from Rp 1.59 trillion. Business sources said banks were
reluctant to provide BFI new credits on dispute over shares involving the board of directors of BFI
Finance and PT Aryaputra Teguharta, former owner of BFI. A number of banks were reported to
have cancelled loan commitment to BFI. Around 80% of credits offered by BFI Finance were
financed with loans from banks and the rest from bonds.
Decline was also recorded in the first quarter of this year in the income of WOM Finance to Rp 332.8
billion from Rp 355.16 billion in the same period last year. The income of BFI dropped to Rp 215.09
billion from Rp 239.58 billion.
The income of Adira Dinamika Multifinance shrank to Rp 827.56 billion from Rp 909.53 billion. The
decline in the income of the three companies was the main cause of the fall in the total income of the

20. nine listed companies.
The total value of income of the 9 listed multi-finance companies in the first quarter of 2010 was
recorded at Rp 1.85 trillion, down 5.23% from Rp 1.949 trillion year-on-year.
However, 8 of the 9 listed companies posted an increase in net profit. The only one reported a
decline was Indo Citra Finance, which suffered a loss of Rp 282.78 billion in the first quarter of 2010
up from a loss of Rp 245.19 billion in the same period last year.
The net profit of the 9 listed multi-finance companies totaled Rp 267.45 billion in the first quarter of
2010, up 27.54% from Rp 209.69 billion in the same period last year.
Interest rates
The interest rates of credits offered by multi-finance companies have tended to decline after the
central bank cut its key rate to a record law at 6.5% by the end of 2009.
The interest rates are around 6%-7% a year on credits for cars and 22%-25% for motorcycles 22%-
25% and 1.9%-2.75% for household electronic goods.
The interest on credit card financing is 2.75%-3%, and on leasing credits is around 16%--18%, and
factoring financing is 11% for US dollar transactions and 20%-21% for rupiah ru·pi·ah Â
n. pl. rupiah
See Table at currency.
[Hindi rupay , rupiy  transaction.
Marketing strategies and competition
Competition among multi-finance companies includes in services, interest rates, flexibility in credit
terms Credit Terms
The conditions under which credit will be extended to a customer. The components of credit terms
are: cash discount, credit period, net period. , dealers named, promotion systems, etc. Amid the
sharp the competition, financing companies adopt certain strategies as follows:
--Improve services to consumers
Multi-finance companies offered facilities in payments of installments such as through ATMs,
security of certificate of ownership of motor vehicles (BPKB), simplification in the procedure of
motor vehicle license (STNK), speed in service to consumers and dealers.
--Expand distribution networks
Opening more branches including in smaller cities to be closer to consumers as most of the
consumer's middle to low class people.
--Customer relationship

21. Financing firms need to maintain good relationships with customers. Customers are offered special
price in their second proposal for credits.
--Skip installment package
This facility constitutes a breakthrough attracting consumers first offered by ACC. Consumers are
free to pay their installment in certain periods such as in Idul Fitri and Christmas days and new
academic year . Progressive installments with the first installments are lower than normal monthly
payments, degressive installments with installments declining every six months to protect the
consumer's risks at the end of the installment months and balloon payment The final installment of a
loan to be paid in an amount that is disproportionately larger than the regular installment.
When a loan is made, repayment of the principal, which is the amount of the loan, plus the interest
that is owed on it, is divided into installments due at  with first installments below normal level and
the remaining debt to be paid in the last installment.
--Customer to customer financing
Astra Credit Company (ACC) has expanded market by adopting Customer to Customer financing,
which is a payment facility for the purchases of second hand vehicles in credit from individuals. The
process is fast and easy normally given approval in less than 8 hours. More than 80% of consumers
of automotive products of Astra use credits from ACC.
--Cooperation with dealers
Through cooperation with dealers multi-finance companies would have greater guarantee of supply
of products to be offered.
--Establish networks with banks
In order to facilitate payment by consumers, multi-finance companies could establish cooperation
with banks. Through cooperation consumers could make repayment through any ATMs of the banks.
WOM currently has 2,500 dealers to be increased to 3,000 by the end of this year. It has 110
branches and the number will also be increased.
--Cut interest rate
The key interest rate of Bank Indonesia will help determine the expansion of multi-finance industry.
If the key rate is reduced multi finance companies could offer lower interest rates to attract
consumers.
Competition between multi-finance industry and banking industry would result in financing cost.
Banks are more aggressive in expanding business in financing especially in financing the purchases
of cars and motor cycles. A number of banks which have division offering car ownership credits
(KPM KPM Königliche Porzellan Manufaktur (German saxonian porcelain factory)
KPM Key Performance Measures
KPM Kills Per Minute (gaming)
KPM Kodak Picture Maker

22. KPM Kyocera Print Monitor
KPM Keystrokes per Minute ) include Bank Mandiri Bank Mandiri (JSX : BMRI) is the largest bank in
Indonesia in term of assets, loans and deposits. Total assets as of Q3 2006 were IDR 253.7 trillion (or
USD 25.7 billion). It also has Capital Adequacy Ratio (CAR) of 23% (including market risk), Return
on Asset (RoA) of 0. , Bank Niaga, Bank BNI BNI Business Network International
BNI Business Networking International
BNI Bank Negara Indonesia
BNI Bechtel National, Inc.
BNI British Nursing Index
BNI Barrow Neurological Institute (Phoenix, AZ)Â , etc.
Sources of funds
Multi-finance industry needs financial support as generally they have limited funds to meet the
market demand for their services.
In the 2005-2009 period funds received by multi-finance industry grew 16.4% per year. In 2006,
funds received by multi-finance industry reached Rp 108.9 trillion or an increase of 12.8% from the
previous year's level of Rp96.5 trillion. The amount grew to Rp 127.3 trillion in 2007, to Rp 168.5
trillion in 2008 and to an estimated Rp 174.4 trillion in 2009.
In 2010, total fund received by multi-finance companies is expected to continue to scale up. By May,
2010 the total loan funds from banks and financial agencies already reached Rp 129.06 trillion or an
increase of 14.03% from Rp 113.18 trillion in the same period last year.
Sources of funds for financing industry include banks, non banks, bonds, private placement and
other loans.
Bank loans
Loans from banks both local and foreign banks have continued to increase from Rp 49.2 trillion in
2005 to Rp 89.2 trillion in 2009. Bank loans accounted for 51.1% of the total funds used by multi-
finance companies in 2009.
In 2009, loans from local banks totaled Rp 53.1 trillion or 30.4% of the total loans. Foreign banks
accounted for 20.7% or Rp 36.1 trillion of the total loans.
Joint venture multi-finance companies are the main users of foreign loans. They use fund mainly
from their parent companies or affiliated financial agencies.
Joint financing
Multi finance companies seek funds through bonds and bank loans to finance their operations
without partnership. Some seek joint financing with banks to share the cost.

23. In the past several years banks are more interested in seeking cooperation with multi-finance
companies to distributed consumer credits in the forms of car and motorcycle credits. The
cooperation scheme is known as joint financing. Around 70% of funds required by BCA Finance are
from its parent company BCA and Bank Mandiri.
Banks use financing firms to help in their credit expansion especially for consumer credits. Under
the cooperation banks normally provide 90% of the funds.
Some banks have even acquired multi-finance companies. Generally, banks seek to acquire multi-
finance companies having assets from Rp 500 billion to Rp 1 trillion. Multi-finance companies with
assets of more than Rp 1 trillion are backed up by financially powerful shareholders.
Acquisition of multi-finance companies by banks may lead to increase in consumer credits. Banking
observers said for many banks consumer credits carry less risks than corporate credits. Apart from
being smaller, it easier to settle NPL of consumer credits. Among banks which have acquired multi-
finance companies include Bank Mandiri, Bank Danamon and BCA.
FIF relies on joint financing partner for 65% of its fund requirement. The rest are raised through
bonds or loans. FIF has established such cooperation with 12 banks including Permata, Mega,
Mandiri, Niaga, and NISP NISP National Industrial Symbiosis Programme (UK)
NISP National Industrial Security Program
NISP Neutron Instrument Simulation Package
NISP National Individual Security Program
NISP Nutrition Services Incentive Program . Bank Permata, which is a subsidiary of the Astra Group,
contributes 12% to the fund required by FIF.
Some multi-finance companies have also had joint financing among themselves to share the cost.
However, there are not many of them, only 10 companies have had joint financing.
Bonds
Funds rose through bonds increased from year to year to reach Rp 13.6 trillion in 2009 or an
increase of 18.3% from Rp 11.5 trillion in the year before. The bond fund contributed 7.8% to the
total financing of Rp 174.4 trillion that year.
In 2010, a number of multi-finance companies issued bonds such as Astra Sedaya Finance issued
bonds valued at Rp 1.5 trillion in February 2010. In April, Federal International Finance issued
bonds valued at Rp 1 trillion, followed in September by Adira Dinamika Multi Finance valued at Rp
1.5 trillion with a fixed coupon rate. See the following table.
Government regulation and policy
Regulation on multi-finance business
The first regulation on multi-finance business in Indonesia was issued in 1974. The regulation,
however, concerned only leasing. Later the regulation is revised.

24. The main regulations on multi-finance business are decision of the finance minister No.
448/KMK.017/2000 per October 2000 and No. 178/LMK.06/2002 per April 2002. The two decisions
regulate establishment, capital, ownerships and board of directors, opening of branches,
management and investment, limit of activities and other related aspects of multi-finance companies.
--Activities of multi-finance companies
Based on the decision of the finance minister No. 448/KMK.017/2000, the business scope of multi-
finance companies is expanded to four types:
* Leasing
* Factoring
* Consumer financing, including financing the purchases of motor vehicles and electronic goods and
housing credits.
* Credit cards
--Establishment of financing companies
Financing firms could be established and owned by:
* Indonesians and or Indonesian corporate bodies
* Foreign companies in joint venture with Indonesian citizens and or Indonesian corporate bodies.
* The corporate bodies must be limited company (PT) or cooperatives
Applications for license to establish a financing firm must be addressed to the finance minister.
A decision of the finance minister No. 185/KMK.06/2002 per April 2002, stopped issuance of new
license for financing firms in Indonesia, but the regulation was no longer effective in 2006 with a
decision of the finance minister No.84/PMK.012/2006 per September 2006.
--Ownership
* A foreign corporate body may not own a multi-finance company more than 85% of the paid up
capital.
* Capital participation for a shareholder in the form of a corporate body is not more than 50% of the
equity capital
* Equity capital of a shareholder in the firm of a limited company (PT) constitutes the total amount of
paid up capital, additional shares, reserve and profit/loss balance.
* Equity capital of a shareholder in the form of cooperative is the total amount of basic saving,
obligatory saving, reserve and grant.
New regulation of finance minister No. 84/2006

25. A new regulation of the finance minister No. 84/2006 issued in September 2006 concerned a new
policy on capital and private placement.
Under the new regulation, paid up capital of a new limited company or basic savings of a
cooperative are set as follows:
* An Indonesian private company or a joint venture must have a paid up capital of at least Rp 100
billion
* The basic saving is at least Rp50 billion for a cooperative.
Private placement which constitutes promissory note promissory note, unconditional written
promise to pay a certain sum of money at a definite time to bearer or to a specified person on his
order. Promissory notes are generally used as evidence of debt. Â or medium term note (MTN MTN
A short-form for Medium Term Note.
MTN
Medium term notes issued by corporations, much like shorter-term commercial paper.
MTN
See medium-term note (MTN).
) could be used as an alternative source of financing for various real sectors including KPR KPR
Kawartha Pine Ridge (Canada)
KPR Kansas Public Radio
KPR Kennewick, Pasco, Richland (Tri-cities Washington)
KPR Kentucky Performance Report
KPR Ketopantoate Reductase
KPR Korean People's Republic  (housing credit). With the alternative financing, multi-finance
companies could offer a lower price that the price the have to offer with fund from banks.
Capital requirement
Bapepam-LK the capital market watchdog has been stricter in approving license for multi-finance
business. Based on a regulation of the finance minister No. 84/ 2006, the paid up capital and basic
saving of a multi-finance company is Rp 100 billion. The increase in the capital minimum limit is to
prevent the license from being traded.
Conclusion and Prospects
The country's multi-finance industry, which is dominated by consumer financing business, continued
to grow in 2009 despite the global financial woes.

26. The total value of financing reached Rp 137.2 trillion in 2009, up 27.7% to Rp 175.2 trillion by
August, 2010. In 2009, consumer financing contributed 65.78% or Rp 90.3 trillion to the total value
of financing. Credits for the purchases of automotive products accounted for 80% of the total value
of consumer financing with financing of electronic goods accounting for the rest. Leasing counted
for Rp 43.4 trillion (31.67%), factoring for Rp 1.8 trillion (1.34%) and credit card for Rp 900 billion
(0.64%).
Meanwhile, the assets of multi-finance industry rose from Rp 174 trillion in 2009 to Rp 201.6 trillion
in August 2010, or an increase of 15.8%. The largest contributors to the assets were bank loans
totaling Rp 89.2 trillion and bonds valued at Rp 13.6 trillion in 2009. Currently multi-finance
industry have relied more on joint financing to cope with difficulty in financing rather than financing
with channeling. The risk in joint financing is shared between parties involved. The joint financing
system has increased partly as more multi-finance companies have been acquired by banks or
established by banks.
The cut in Bank Indonesia's key rate (BI Rate) now kept at record low of 6.5% has improved the
purchasing power of consumers and bolstered bol·ster Â
n.
A long narrow pillow or cushion.
tr.v. bol·stered, bol·ster·ing, bol·sters
1. To support or prop up with or as if with a long narrow pillow or cushion.
2. Â the multifinance industry as the companies could offer lower interest rate to their customers.
Multi-finance companies could cut their interest rates by an average of 1%-2% for motor vehicle
buyers. Therefore, multi-finance business is expected to grow faster in 2011.
In 2010, consumer financing business is forecast to continue to grow and maintain strong
domination domination
the relationship between animals and humans in which little consideration is given to the rights of
the animals. The prevailing sentiment is one of proprietary domination. Â of the financing business
in the country especially in financing the purchases of cars and motorcycles. According to the
Indonesian association of motorcycle industry (AISI AISI American Iron and Steel Institute
AISI African Information Society Initiative
AISI Alberta Initiative for School Improvement (Canada)
AISI As I See It
AISI American International Supply, Inc (Oakland, CA)Â ) sales of motorcycles in 2009 reached 5.88
million units, and the figure is forecast to rise to more than 7 million units in 2010. The motor
vehicle association (Gaikindo) said car sales in 2009 totaled 483,000 units and this year sales target
is set at 600,000 units or an increase of 24.3%. With the rise in sales, financing value is also
expected to increase as up to 90% of motor vehicle purchases are financed with credits provided
mainly by multi-finance companies.

27. It is predicted that leasing business will also expand. The prospects remain encouraging with
growing demand for heavy equipment such as tractors, excavators, loaders, etc. mainly from mining
companies such as nickel nickel, metallic chemical element; symbol Ni; at. no. 28; at. wt. 58.69;
m.p. about 1,453&degC;; b.p. about 2,732&degC;; sp. gr. 8.902 at 25&degC;; valence 0, +1, +2, +3,
or +4. , coal and iron ore miners and oil palm plantations PLANTATIONS. Colonies, (q.v.)
dependencies. (q.v.) 1 Bl. Com. 107. In England, this word, as it is used in St. 12, II. c. 18, is never
applied to, any of the British dominions in Europe, but only to the colonies in the West Indies and
America. 1 Marsh. Ins, B. 1, c. 3, Sec. 2, page 64. . The country's oil palm plantation Plantation, city
(1990 pop. 66,692), Broward co., SE Fla., a residential suburb of Fort Lauderdale; inc. 1953. The city
has grown rapidly along with the development of S Florida. Â and coal mining industries are growing
fast. Demand for palm oil is growing with the program to produce in large scale CPO-based bio-fuel.
Demand for credits to finance the purchases of heavy equipment, however, is not as strong as
demand for car and motorcycle credits. Financing business is also growing in the electronic goods
sector.
Based on annual growth of 15%-17%, the total value of financing by multi-finance industry is
predicted to increase in the next five years from an estimated Rp 252 trillion in 2010 to Rp 437
trillion in 2014. Financing of motorcycle and car purchases is expected to remain dominant.
Table--1
Number of multi-finance companies, 2006-2010
Year Number of companies Growth (%)
2006 195 --
2007 217 11,3
2008 212 -2,3
2009 198 -6,6
2010 * 194 -2,0
Source : Finance ministry /ION processed
Note * until July
Table--2
Types of multi-finance company, 2010
Types of financing Number of companies Share (%)
Leasing 63 32.5
Factoring 23 11.9
Consumer financing 106 54.6
Credit card 2 1.0
Total 194 100.0
Source : Finance ministry
Table--3
Multi-finance companies having problems, 2009-2010

28. Names of company Status Period
PT. Tridana Pratama Finance License revoked 2009
PT. Primarindo Finance Corp License revoked 2009
PT. Inti Karya Megah Finance License revoked 2009
PT. Sahabat Multi-finance License revoked 2009
PT. Grand Pacific Tamara License revoked 2009
PT. Duta Kirana Finance Tbk License revoked 2009
PT. Artha Sedaya Finance License revoked Quarter I/2010
PT. Primadana Putra Finance License revoked Quarter I/2010
PT. Mandiri Intifinance License revoked Quarter I/2010
PT. Pacific International Finance Suspended Quarter I/2010
PT. Ometraco Multiartha Suspended Quarter I/2010
PT. Alindo Internusa Finance Suspended Quarter I/2010
PT. Perdana Cipta Finance Suspended Quarter I/2010
PT. Hana Risjad Finance Suspended Semester I/2010
PT. Arthasaka Inti Finance Suspended Semester I/2010
PT. Suprawira Finance Suspended Semester I/2010
Source : Bapepam-LK
Table--4
New licensees among multi-finance companies, 2009-2010
Date of
Name of companies Line of business issuance
PT Hitachi Construction Machinery Leasing 2009
Finance Indonesia.
PT Anugerah Buana Central Multifnance Consumer financing 2009
PT. Jasra International Multifinance Consumer financing 2010
PT. Sarana Global Finance Indonesia Consumer financing 2010
PT. PPA Finance Consumer financing 2010
PT. SMFL Leasing Indonesia Leasing 2010
PT. Central Sentosa Finance Consumer financing 2010
PT. IBJ Verena Finance Consumer financing 2010
Source : ICN processed
Table--5
Multi-finance companies by status, 2010
Status Number % in number
BUMN 1 0,5
Indonesian private companies 150 77,3
Joint venture 43 22,2
Total 194 100,0
Source : Finance ministry

29. Table--6
Owners of multi-finance companies
Number of Percentage in
Owners companies number (%)
Banks 23 11,9
ATPM groups 13 6,7
Foreign principals 9 4,6
Other 149 76,8
Total 194 100,0
Source: ICN processed
Table--7
Multi-finance companies and ownership
Groups of
owners Shareholders Name of Multi-finance companies
Bank Bank BII Wahana Ottomitra Multiiartha
Bank BNI --BNI Multi-finance
--Pembiayaan Arta Negara
BCA BCA Finance
Bank CIMB Niaga --Saseka Gelora Finance
--Niaga International Factor
Bank UFJ Indonesia U Finance Indonesia
Bank Permata --Bali Tunasfinance
--KDLC Bancbali Finance
BRI UFJ BRI Finance
Bank Sumitomo Exim SB Leasing
Mitsubishi Indonesia
Bank Mandiri Koexim Mandiri Finance
ABN Amro Bank ABN Amro Finance Indonesia
Bank Panin --Clipan Finance,
--DKB Panin Finance
--Verena Oto Finance
--Dai-Ichi Kangyo Panin
Leasing
BRI --BRI Finance

30. --BTMU--BRI Finance
Citibank Citigroup Finance Indonesia
Maybank --Wahana Ottomitra Multiartha
Tbk
--BII Finance Centre
Bank of Tokyo Bumiputera BOT Finance
Group PT CT Corpora --Mega Auto Finance
--Mega Central Finance
--Para Finance
PT. Bhakti Bhakti Finance
Investama Tbk
ATPM Group Astra --Astra Auto Finance
--Astra Multi Finance
--Stacomitra
--Toyota Astra Finance
--Federal International Finance
Tbk
--Surya Artha Nusantara Finance
--Komatsu Astra Finance
Indomobil --Indomobil Finance Indonesia
--Suzuki Finance Indonesia
--Swadharman Indotama Finance
--Swadharma Surya Finance
Mitsubishi --Tiga Berlian Auto finance
--Dipo Star Finance
Foreign Credit BFI Finance Indonesia Tbk
principals Suisse-Morgan
Asia Financial --Adira Dinamika Multifinance Tbk
Pte Ltd --Adira Quantum Multi-finance
Sumitomo Corp --Summit Oto Finance
--Oto Multiartha
Fuji Ltd Jaya Fuji Leasing Pratama
Caterpillar Caterpillar Finance
Financial
Mitsui Corp --Mitsui Leasing Capital
--Bussan Auto Finance

31. Source: Finance ministry/ICN
Table--8
Developments of Assets, 2006-2010
Total asset
Year (Rp trillion) Growth (%)
2006 108.9 --
2007 127.3 16,9
2008 168.4 32,3
2009 174.0 3,3
2010 * 201.6 15,8
Average growth 17.1
Source: BI
Note * until June
Table--9
20 largest multi-finance companies with assets larger than Rp 1
trillion, 2009
Assets
Multi-finance companies (Rp trillion) Share (%)
Central Java Power 26,7 15,3
Astra Sedaya Finance 9.9 5.7
Federal International Finance 9.1 5.2
Bussan Auto Finance 8.3 4.8
Summit Oto Finance 8.2 4.7
Dipo Star Finance 6.3 3.6
Toyota Astra Financial Services 5.5 3.2
Adira Dinamika Multi-finance 4.3 2.5
Orix Indonesia Finance 4.2 2.4
GE Finance Indonesia 2.9 1.7
Chandra Sakti Utama Leasing 2.9 1.7
Suzuki Finance Indonesia 2.9 1.7
Caterpillar Finance Indonesia 2.7 1.6
Wahana Ottomitra Multiartha 2.6 1.5
BFI Finance Indonesia 2.4 1.4
Surya Artha Nusantara Finance 2.3 1.3
Mandala Multi-finance 2.1 1.2
BCA Finance 2.0 1.1
Komatsu Astra Finance 1.1 0.6
Clipan Finance Indonesia 1.7 0.9
Sub total 108.1 62.1
Other 65.9 37.9
Total 174.0 100.0
Source: Finance ministry

32. Table--10
20 multi-finance companies with assets less than Rp 1 trillion, 2009
Portion
Assets of total
Multi-finance companies (Rp billion) assets (%)
Multindo Auto Finance 960.6 0.55
Sunprima Nusantara Pembiayaan 837.7 0.48
Sasana Artha Finance 832.7 0.47
Astra Auto Finance 779.3 0.45
Andalan Finance Indonesia 775.0 0.44
Mitsubishi UFJ Lease & Finance 728.8 0.42
Pro Car International Finance 727.4 0.41
Tigaberlian Auto Finance 708.9 0.40
Sinar Mas Multi-finance 701.8 0.40
Artha Prima Finance 637.2 0.37
Verena Oto Finance 643.5 0.36
HD Finance 612.9 0.35
Armada Finance 589.7 0.34
Clemont Finance Indonesia 583.7 0.34
ITC Auto Multi-finance 578.2 0.33
Internusa Tribuana Citra Multi-finance 534.4 0.31
Swadharma Indotama Finance 515.3 0.29
Amanah Finance 477.1 0.27
Mandiri Finance Indonesia 464.1 0.26
Swadharma Bhakti Sedaya Finance 431.9 0.25
Sub total 13,121.2 7.54
Others 160,878.8 92.46
Total 174,000 100.0
Source: Finance ministry
Table--11
20 multi-finance companies with assets below Rp 100 billion, 2009
Asset
Multi-finance (Rp billion) Share (%)
Arjuna Finance 97.6 0.06
Mashill International Finance 96.3 0.06
Rabana Investindo 87.9 0.05
Arthabuana Margausaha Finance 84.1 0.04
Woka International 73.9 0.04
Siantar Top Multi-finance 73.7 0.04
Paramitra Multi-finance 71.8 0.04
Patra Multi-finance 68.5 0.03
Swadharma Surya Finance 66.9 0.03
AEON Credit Services 65.6 0.03
Tirta Larastama Dinamika Finance 62.4 0.03
Pembiayaan Artha Negara 55.1 0.03

33. Koperasi Pembiayaan Indonesia 54.9 0.03
Asia Multidana 53.9 0.03
Pan Pacific Auto Finance 53.7 0.03
Danareksa Finance 53.4 0.03
Otomas Multi-finance 53.2 0.03
Sub total 1.172.9 0.67
Other 172.827.1 99.33
Total 174.000 100.0
Source: Finance ministry
Table--12
Financing value of multi-finance industry, 2006-2010
Financing value
Year (Rp trillion) Growth (%)
2006 93.1 --
2007 107.7 15.7
2008 131.6 22.2
2009 137.2 4.3
2010 * 175.2 27.7
Average growth 17.5
Source: BI, ICN processed
Note * by August
Table--13
20 largest multi-finance companies by financing value, 2009
New credits Share
Multi-finance (Rp trillion) (%)
Federal International Finance 12.0 8.7
Astra Sedaya Finance 9.1 6.6
Oto Multiartha 8.4 6.1
Bussan Auto Finance 7.9 5.8
Summit Oto Finance 7.2 5.3
Dipo Star Finance 5.9 4.3
Toyota Astra Financial 5.1 3.7
GE Finance Indonesia 2.8 2.0
Caterpillar Finance Indonesia 2.7 1.9
Orix Indonesia Finance 2.6 1.9
Adira Dinamika Multifinance 2.6 1.9
Suzuki Finance Indonesia 2.6 1.9
Chandra Sakti Utama Leasing 2.5 1.9
Surya Artha Nusantara Finance 2.2 1.6
Wahana Ottomitra Multiartha 2.1 1.5
BFI Finance 2.1 1.5
Komatsu Astra Finance 1.9 1.4

34. Mitsui Leasing 1.9 1.4
BCA Finance 1.9 1.4
Clipan Finance Indonesia 1.6 1.2
Sub total 85.1 62.0
Other 52.1 38.0
Total 137.2 100.0
Source: Finance ministry
Table--14
NPL of multi-finance industry, 2010
Description April July
NPL 1.81% 1.90%
Source: APPI, ICN processed
Table--15
Financing value by types of financing, 2008-2009
(Rp trillion)
Financing Financing
(Rp Market (Rp Market
trillion) share trillion) share
Types of financing 2008 (%) 2009 (%)
Consumer financing 80,2 60,10 90,3 65,78
Leasing 49,7 37,26 43,5 31,67
Factoring 1,9 1,44 1,8 1,34
Credit card 1,0 0,75 0,9 0,64
Other 0,6 0,45 0,7 0,57
Total 133,4 100,0 137,2 100,0
Source: BI, ICN processed
Table--16
Multi-finance companies posting largest net profit, 2009
Multi-finance Net profit (Rp billion)
Adira Dinamika Multifinance 1,212.4
Federal International Finance 812.8
Central Java Power 766.1
Oto Multiartha 464.4
Bussan Auto Finance 420.2
Astra Sedaya Finance 413.7
Summit Oto Finance 405.1
BCA Finance 387.8
BFI Financial Indonesia 301.4
Dipo Star Finance 208.9

35. Clipan Finance 150.3
Mandala Multi-finance 108.1
Orix Indonesia Finance 103.7
GE Finance 93.8
Caterpillar Finance Indonesia 87.1
Toyota Astra Financial Services 81.2
Toyota Astra Financial Services 81.2
Surya Artha Nusantara Finance 76.3
Chandra Sakti Utama Leasing 66.3
Wahana Ottomitra Multiartha 60.7
Source: Bapepam LK
Table--17
Multi-finance companies reporting losses in 2009
Multi-finance Losses (Rp billion)
Swadharma Indotama Finance 31.3
Paramitra Multifinance 8.3
Arjuna Finance 6.9
Danasupra Erapacific 2.2
Diners Jaya Indonesia International 2.2
Transpacific Finance 1.7
Nation Capital Finance 1.1
Indocitra Finance 0.9
Metro Finance 0.9
Tirta Finance 0.7
Pembiayaan Artha Negara 0.6
Siantar Top Multifinance 0.3
Source: Bapepam-LK
Table--18
Performance of publicly traded multi-finance companies, 2009-2010
Credit (Rp trillion)
Name of companies 2009 Semester I/2010
Adira Dinamika Multi Finance Tbk 2.6
BFI Finance Tbk 2.1
WOM Finance Tbk 2.1
Mandala Finance Tbk 1.7
Clipan Finance Indonesia Tbk 1.6
Buana Finance Tbk 1.2
Verena Oto Finance Tbk 0.590
Batavia Prosperindo Finance Tbk 0.207
Trust Finance Indonesia Tbk 0.182
Indo Citra Finance Tbk 0.042
Source : ICN processed

36. Table--19
Interest rates on multi-finance credits, 2010
Types of financing Interest rates (%)
Consumer financing
--Car financing 6.5-7
--Motorcycles financing 22-25
--Electronic goods financing 1.9-2.75
Credit card 2.75-3
Leasing 16-18
Factoring 11-21
Source: ICN processed
Table--20
Funds received by multi-finance industry and sources, 2005-2009
(Rp trillion)
Source 2005 2006 2007 2008 2009
1. Domestic loans :
a. Banks 25.0 29.8 35.5 52.0 53.1
b. Other 4.7 3.5 3.8 3.6 4.5
2. Foreign loans:
a. Banks 24.2 25.2 30.2 43.0 36.1
b. Other 7.2 7.0 7.3 11.3 8.2
Total loans 61.1 65.5 76.8 109.9 101.9
3. Bonds 10.2 10.1 12.9 11.5 13.6
4. Modal 11.7 18.9 24.5 23.2 40.1
5. Other 13.5 14.5 13.1 23.9 18.8
Total loan funds 96.5 108.9 127.3 168.5 174.4
Source: Finance ministry
Table--21
Bonds issued by multi-finance companies
(Rp. Million)
Maturity
Companies 2010 2011

37. Adira Dinamika Multi Finance 90,000 90,000
Astra Sedaya Finance 100,000 --
BCA Finance 275,000 125,000
Federal International Finance 300,000 350,000
Summit Oto Finance 350,000 --
Tunas Financindo Sarana 350,000 --
WOM Finance 160,000 --
Total 1,625,000 565,000
Source: BEI, ICN
Table--22
Estimates of total value of financing, 2010-2014
Year Total financing (Rp trillion)
2010 252
2011 295
2012 345
2013 397
2014 437
Source: ICN processed
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