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Suhartono, president

FIF Group builds better future through financing services

Leading financial services provider Federal International Finance (FIF) Group celebrated its 25th anniversary last May on the back of Indonesia's strong position as Southeast Asia's largest economy with improved credit ratings, rising foreign direct investment and growing consumer spending.

The introduction of low-cost green cars in the country and an expanding middle class have propelled the company towards car financing, a service that augments its reputation as one of Indonesia's largest motorcycle financing firms.

Founded in 1989, FIF Group began its ascent as a leader in consumer financing services with a diversified multifinancing licence before focusing on two-wheeler financing in 1995.

FIFASTRA, FIF Group's Honda motorcycle financing brand, accounts for 80 per cent of total business. The company's retail financing arm Spektra provides consumer financing for home appliances, electronics, furniture and lifestyle products, and agro industry equipment financing.

FIF Group has established a formidable presence across Indonesia, with almost 1,000 networks spanning from Papua to Aceh, over 25,000 employees, 4 million active customers and net service assets estimated at US$2.5 million.

Moving into car financing presents an opportunity for FIF Group to further diversify its portfolio, grounded on the company's steady growth and effective practices.

The company is built upon strong corporate governance - being a subsidiary of Astra International, one of Indonesia's largest diversified conglomerates. FIF Group also benefits from shared knowledge acquired from its sister companies.

Its appeal to international investors lies in a successful financial track record of loans, repayments and net profits.

The company has experienced steady financial growth over the past four years, attracting global investors such as the Japan Bank for International Cooperation, the Netherlands Development Finance Company and Deutsche Investitions- und Entwicklungsgesellschaft.

In 2011, FIF Group listed on the Tokyo Stock Exchange through the issuance of Shogun bonds denominated in US dollars.

The company credits its growth over the years to a robust and centralised credit management and processing system, a diversified funding strategy, a rich database of 8 million customers, and a strong network of dealers.

"Our mission is bringing a better life to the community. By financing our customers we are helping them realise that they can do more," says president Suhartono. "With a motorcycle loan from us, our customers in rural areas were able to start their small businesses. We expect that we can provide much more of this kind of productive financing in the future."

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