Unfavorable commodity prices and general economic downturn are discouraging heavy equipment leasing providers from further expansion. Surya Artha Nusantara Finance (SAN Finance), for example, is planning to diversify into vessel and CPO financing, due to weakening demand in the mining sector.
Multi-financing firm, Chandra Sakti Utama Leasing, saw a 10% decline in loans to the heavy equipment sector, blaming the bearish trend on commodity prices.
Buana Finance, with 71% of its portfolio in heavy equipment loans, reported 14.7% decline in new financing during the first quarter of the year.