Indonesia's finance firms face rising borrowing costs in 2027
Fitch Ratings reports that Indonesian finance and leasing firms will face increased borrowing costs by 2027 due to recent interest rate hikes. While strong demand for vehicles and heavy equipment currently supports growth, rising credit risks in the EV sector remain a concern.
Why it matters
The report provides insight into the financial health of Indonesia's consumer credit market and the risks associated with the rapidly growing electric vehicle financing sector.
Published: 29 minutes ago Mufid Majnun via Unsplash. Indonesia's finance firms face rising borrowing costs in 2027 Strong new car and EV sales will help support industry growth.
Indonesia ’s finance and leasing companies will see the impact of rising borrowing costs in 2027, according to Fitch Ratings.
The companies still benefit from earlier, cheaper funding, which should support profitability in 2026, the credit rating company said in a report.
Industry profitability improved in H1 2026 thanks to the lower funding costs and better demand, although loan impairment costs continue to weigh on profitability.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in