Two Years into the Pandemic, Total Assets of Financing Institutions Contract

The financial performance of financing institutions, based on their asset value, showed a decline for two consecutive years during the Covid-19 pandemic.

In 2020, the assets of financing institutions were recorded at Rp589.34 trillion, down 4.7% from 2019. Then, the assets of financing institutions decreased again by 0.9% to Rp583.51 trillion in 2021.

In previous years, however, the asset value of financing institutions had increased since 2017. At that time, the value was Rp555.87 trillion, and it continued to increase until it reached Rp618.4 trillion in 2019.

By type, financing companies recorded the highest assets, namely Rp433.11 trillion in 2021. This was down 4.3% from the previous year's Rp452.85 trillion.

Meanwhile, the asset value of infrastructure financing companies increased by 11.8% year-on-year to Rp129.14 trillion in 2021. Similarly, venture capital companies saw a slight increase of 0.9% to Rp21.27 trillion last year.

Quoting the Financial Services Authority (OJK), a financing institution is a business entity that conducts financing activities in the form of providing funds or capital goods.

These financing institutions can be divided into three types: financing companies, venture capital companies, and infrastructure financing companies.

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