Best of the Best: Wahana Ottomitra Multiartha

1 month ago . 2 min read
EV
Elisa Valenta
Senior Writer at Forbes Indonesia
Best of the Best: Wahana Ottomitra Multiartha
WOM's President Director Djaja Suryanto Sutandar (Courtesy of WOM Finance)

Auto financing company PT Wahana Ottomitra Multiartha (WOM Finance) has taken quick steps to proactively reaching out to their customers to take advantage of the recently issued stimulus from the Financial Services Authority (OJK) to manage bad loans ratio and ease loan repayment during the pandemic. The stimulus relaxes debt quality assessment and restructuring requirements for debtors.

And WOM Finance offers several restructuring schemes, such as extending loan tenure and installments or postponing the principal loan payment for up to a maximum of 12 months. The company has also made it easier for its customers to access this stimulus by optimizing digital tools, allowing them to submit restructuring proposals online. The company has restructured loans for some 54,000 customers, worth Rp 845 billion, as part of the loan-relaxation program. The amount equals to15% of WOM’s total loan portfolio.

With the current economic conditions, WOM Finance has adjusted its financial target for this year. As new financing dropped by 48% in the first half, the company lowered its full-year new financing target from Rp 6.5 trillion to Rp 3 trillion. At the end of the first quarter, the company’s non-performing financing level was maintained at 2%, under the maximum limit of 5% set by OJK.

While this year is very challenging for the company, WOM relatively had a good year in 2019. The growth in net profit was the highest in the past decade. The company booked Rp 215.18 billion in profit, up 21% from 2018 even though new financing was flat reflecting that last year, domestic sales of motorcycles were stagnant, and car sales were down by 10%.  

The company managed to book a good profit by improving its asset quality bringing down their non-performing financing level from 2.8% at the end of 2018 to 2% at the end of 2019. The decrease in bad loans lowered the company’s provisioning cost by over 14% from Rp 474 billion in 2018 to Rp 404 billion. This improvement in non-performing loans level last year likely helps the company in managing this year’s situation better.

EV
Written By
Elisa Valenta
Senior Writer at Forbes Indonesia
Topics
Companies