PT Armada Finance was established as a Limited Liability Company with Legal Status in Jakarta, based on the Notarial Deed No. 11, dated 7 April 1994, of Hendrik Lambertus Hans Verhoeven (Bachelor of Law). The Company obtained its business permit based on the Decree of the Minister of Finance of the Republic of Indonesia No. 554/KMK.017/1994 dated 10 November 1994.
PT Armada Finance began its operations in March 1995. On 23 June 1995, the Company started to provide its first financing through the funding support provided by PT Bank Rakyat Indonesia (Persero) Tbk.
Pursuant to its Minutes of Meeting No. 81, dated 30 August 1996, PT Armada Finance moved its Head Office from Jakarta to Magelang in Central Java, with renewed passion and vision to become a dominant player in the Central Java region.
PT Armada Finance belongs to a group of companies named Armada Group, which consists of 40 companies operating in four different industries: automotive trading, autobody manufacturing, financial service, and property & services. The Armada Group’s total turnover in 2018 was more than Rp 8 trillion.
The Armada Group has licensing agreement with Chevrolet, Daihatsu, Isuzu, Honda, Hino, Mazda, Mitsubishi, and Suzuki to operate automobiles and motorcycles dealers and their networks in many cities in Indonesia. However, although a part of the Armada Group, PT Armada Finance is aware that it is infeasible to compete head-to-head with finance companies which are: (a) public companies, (b) owned by or affiliated with banks, (c) owned by or affiliated with automotive manufacturing companies, and (d) owned by foreign investors which provide car-loan financing specially for new cars purchases.
Therefore, from the beginning of its operations, PT Armada Finance has determined to focus more on car-based collateral financing for micro, small, and medium enterprises (which was later classified as ‘investment and working capital financing’ by the Financial Services Authority/Otoritas Jasa Keuangan), as well as multipurpose car-based collateral financing needed by families. This focus is reflected on PT Armada Finance’s chosen slogan: “Business Partner, Family Companion”. In 2016, with goals to broaden our market base and to give more options to customers, PT Armada Finance began developing its core system to be able to provide customers with a different type of financing, namely property-based collateral financing, in which land and/or building is used as an alternative collateral. This will either be investment, working capital, or multipurpose financing. PT Armada Finance aims to facilitate those without automobiles with a way to access our financing, so long as there is property for collateral. To date, however, we have not yet executed this property-based collateral financing as we have not yet secured reliable source of funding(s).