Business Activity

Company’s Operation

In 2013 the national finance growth below 10%, it is off target Indonesian Financial Services Association (IFSA) which hopes to grow 10%.

When the year 2012 was a year of consolidation with a focus on efficiency, then in 2013 was the first step in the development of the Company, which are total finance company grew by 8.5%, due to the increase in consumer financing.


Factoring is the purchase and financing in the form or the transfer and management of short-term bills receivable or an enterprise of transactions and foreign trade. This effort is intended to obtain alternative sources of financing outside the banking sector.

Most of the business activities of the company capital is used for factoring as of December 31st, 2013 is Rp. 17.456.250.000,- or 37.38% of the total asset.

According this activity is in the form of financing the purchase and or diversion and management of short-term bills receivable or a company from trading transactions, then factoring implement management selectively with respect to the type, size of production / proportion and source billing customer and business process analysis is concerned.


The Company is not engaged to other financial business unit such as leasing.

Consumer Financing

According to the Indonesian Automotive Industry Association (Gaikindo) car sales in 2013 reached 1,229,903 units, above GAIKINDO’s sales target of 1.1 million units.

In 2013 the Company's performance on a particular consumer finance notably four wheeled vehicles increased significantly.

Consumer finance grew 186.5% from 2012, where in addition to financing four-wheeled vehicles, the company will also finance mortgage loans.

Business Performance Analysis


The Company recorded an increase in total assets was 3.68% in 2013, from Rp. 45.05 billion in 2012 to Rp. 46.70 billion in the year 2013. This increase is mainly due to the increase in the Consumer Finance receivables of Rp. 1.56 billion (168.49%) and an increase in post placement (investment) short-term Rp. 6.99 billion (44.66%) in the year 2013.


Total liabilities in 2013 decreased by 16.2% (U.S. $ 0.478 billion) compared to the position at the end of 2012 (U.S. $ 0.571 billion). The decrease was primarily due to a decrease of Rp. 0.220 billion (71.24%) in other payables.


Total equity of the company 10 2013 has increased by 3.93% due to an increase of Rp. 0.25 billion (16:13%) in retained earnings appropriated and increased Rp. 1.50 billion (16.07%) in the retained earnings inappropriate.


Total revenue in 2013 decreased by 3.11% of the acquisition than in 2012, from Rp. 4.61 billion to Rp. 4.47 billion, which is caused by a decrease in other income by 11.71%.

However, the Company's consumer financing income (net) in 2013 increased by 495.97%.


The company expenses decrease in 2013 to Rp. 2.32 billion compared to Rp. 2.74 billion in 2012, or a decline of 15.43%. The decrease is mainly due to a decrease in provisioning for impairment losses amounted to 97.06% from Rp. 0.73 billion to Rp. 0.02 billion. While salaries and employee benefits increased by 9.69%.

Income Before Tax Expense

The Company recorded income before tax expense of Rp. 2.15 billion in 2013, an increase of 14.92% compared to the position in 2012 of Rp. 1.87 billion.

Income For The Year

Income for the year for the company in the year 2012 increased by 14,45%, from Rp. 1,67 billion in 2012 to Rp. 1,92 billion in 2013.

Cash Flow

Net cash provided by operating activities decreased by Rp. 1.439 billion in 2013.

Net cash used for investing activities in 2013 was smaller than in 2012 from Rp. 0.25 billion to minus to Rp. 7 billion. It is used for short-term investments amounted to Rp. 7 billion.

Net cash provided by financing activities decreased minus Rp. 0168 billion in 2013. This decrease was due to the payment of cash dividends in 2013.

Capacity For Debt Servicing

The Company has the commitment to maintain its liquidity for its operational activities. As a financing company, liquidity is strongly determined in the availability of sufficient funds for any expansion being conducted.

The main source of funding the company is still in the form of equity capital. The Company has no bank debt.

Receivables Collectability Rate

As of 31 December 2013, the composition of consumer financing receivables (gross) are as follows:

  • Not past due: 91.67%.
  • Overdue 1-30 days: 8.33%.
  • No overdue above 30 days.

Company’s Strategy

In 2013, the Company implemented a new strategy which is a continuation of previous years. In 2012, the company's every move and policies based on the principles of efficiency. In 2013, the Company applies the principle of effectiveness and efficiency. The Company applies a very strict risk management in any action, which is intended to strengthen the foundation of sales and strong earnings growth in the future. The implementation of this new strategy will continue to ensure that the entire system will run more efficiently so as to provide more value for the consumer and the company.

Strengthening Organizational Structure

The Company will focus on strengthening the organizational structure, particularly in terms of marketing, lending and billing. Periodically the Company will make an assessment and measurement of targets and control mechanisms on all three of these areas, and also in other areas. The results will show how the focus of the Company's risk management is carried out.

Maintaining Good Relationships With All Business Partners

Trust and good relationships with all business partners who have been looked after better is one of the factors supporting the success of the Company. Therefore, the Company will strive to maintain that trust and continue to foster good relationships with all business partners, to the satisfaction of all parties.

Increasing Human Resources

Improving the quality of human resources (HR) is one of the key factors in the success of the Company. Therefore, the Company believes that investing to build quality human resources will greatly help meet the goals of the Company.

Improving Productivity and Effectiveness

In order to provide optimal results to all stakeholders, the Company is committed to continue doing effectively and increase productivity for optimal results. To achieve these objectives, every process and activity that takes place within the Company, will be encouraged to pay attention to three (3) main points namely effectiveness, optimal control, and always relies on consumer satisfaction.

Improve Infrastructure

Infrastructure is one of the important factors as well as support the company's success. Therefore, the company seeks to enhance the infrastructure and systems, among others, by increasing automation, reducing manual control, as well as update and improve the existing system.


Based on the economic growth and industrial development financing and sales of motor vehicles, in 2014 the Company will seek to grow in the range of 10 percent.