Heavy Equipment Financing Rises as Indonesia Pushes Infrastructure Agenda, OJK Says
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JAKARTA, investortrust.id — Heavy equipment financing in Indonesia continues to expand, fueled by government-led infrastructure and industrial downstreaming programs, according to the Financial Services Authority (OJK).
As of May 2025, total financing disbursed by multifinance companies reached Rp 47.61 trillion ($2.9 billion), marking a 10.72% year-on-year increase, the agency reported.
The rise also reflected modest month-on-month growth of 0.89%, or about Rp 421.52 billion ($25.7 million), said Agusman, Chief Executive for Supervision of Financing Institutions, Venture Capital Firms, Microfinance Institutions, and Other Financial Services (PVML) at OJK.
“This positive trend may continue in line with the government’s strategic initiatives, particularly in infrastructure development and industrial downstreaming,” Agusman said in a written statement issued on Tuesday, July 15, 2025.
The Indonesian government under President Prabowo Subianto has prioritized massive infrastructure spending and value-added processing of raw materials—two sectors that typically rely heavily on construction and mining equipment.
Still, Agusman cautioned that the market remains exposed to several external vulnerabilities.
“Volatile commodity prices and economic fluctuations—both domestic and global—pose risks to heavy equipment financing demand,” he added.
The remarks came as the OJK also disclosed an overall increase in the multifinance sector’s receivables, which rose 2.83% year-on-year to Rp 504.58 trillion ($30.9 billion) as of May 2025.