Flourishing consumer finance market yields brighter prospects for FIFGROUP
Indonesia’s consumer finance market is flourishing, driven by the archipelago’s large and expanding population base and the increasing purchasing power of the middle class. According to a study by Euromonitor International, the country is home to the world’s fourth largest middle class, numbering 19.6 million households in 2016 and is forecast to hit 23.9 million in 2030. This uptrend presents vast opportunities for Federal International Finance (FIFGROUP), the country’s leading multi-finance company.
“Indonesia is a huge market, offering ample opportunities for growth,” says Margono Tanuwijaya, president. “Our goal is to empower more Indonesians, especially those from the rural areas.”
A subsidiary of Astra International – one of Indonesia’s largest diversified conglomerates, the FIFGROUP dominates the motorcycle financing market. Operating under the FIFASTRA brand, it serves as the official provider of financing for Honda motorcycles produced by Astra Honda Motor – the national industry leader for motorcycles.
The FIFGROUP has nearly 200 branches and more than 400 points of service spanning Papua to Aceh.
Apart from Honda motorcycle financing, the FIFGROUP provides multipurpose financing services for the purchase of home appliances, consumer electronics, furniture, bicycles and hand tractors through its SPEKTRA unit. A third brand – DANASTRA offers micro-financing services and business capital loans. To accommodate the diverse needs of the Indonesian people, the FIFGROUP launched sharia-compliant financing services under the AMITRA brand last year. Grounded in Islamic principles, AMITRA extends multipurpose loans and financing of new and used motorcycles, religious travels and working capital. This year, the AMITRA line is further strengthened with its venture into the haj and umrah financing segments.
To complement its expanding network, the FIFGROUP forayed into the digital arena. Leveraging a robust and centralised credit management system, the company’s digital initiative is speeding up loan processing for enhanced customer satisfaction and bolstering organisational productivity. The FIFGROUP hopes to launch an e-commerce platform that supports online application and approval for customers.
“We expect further digitalisation of our activities as we reach out to better connect with Indonesia’s huge, tech-savvy youth population, which is becoming a prominent consumer force with the group’s rising income and expenditure,” Tanuwijaya says.