Indonesia's finance and leasing companies will face the rising effect of higher borrowing costs in 2027, Fitch Ratings said in a Wednesday release.
The increased costs were due to the central bank's policy rate increases, but previously cheaper funding still anchored companies' profitability in 2026, Fitch said.
Wider margins and less-price sensitive borrowers should help some companies weather the cost pressures, the rating agency said.
Fitch saw better industry profitability in the first half of 2026 amid cheaper funding costs and improved demand, with sufficient earnings buffers offsetting loan impairment costs.
However, industry players are still careful about asset-quality trends, using measures such as focusing on middle- to high-income borrowers, using lower loan-to-value ratios and pushing for shorter tenors to offset the risks, Fitch said.