PT. SMFL Leasing Indonesia

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Finance Leases

When its customers seek to acquire machinery and equipment from manufacturers and dealers, PT.SMFL Leasing Indonesia (SMFLI) purchases the equipment instead and leases it to the customer. This is the most-common leasing transaction. SMFLI deals with a wide array of property including information equipment, industrial machinery and equipment, construction machinery, transportation equipment, commercial facilities, and medical equipment.

Furthermore, optimal use of our finance lease scheme enables our customers to accelerate depreciation of fixed assets.

≪Characteristics of Finance Lease in Indonesia≫

  • (1) Total lease payment (principal + interest) deductible for tax purposes.
  • (2) Minimum lease term is 2 or 3 years, which allows accelerated depreciation for tax purposes.
Useful Life 4 year 8 year 16 year
Minimum Lease Term 2 years 3 years 3 years
  • (3) Finance lease is generally a lease with purchase option, which allows the customers to purchase the equipment at the lease term.

Operating Leases

Operating Leases are a scheme where the customer's lease payment is based on the value of the property less its residual value, the amount it is worth at the end of the lease term. In principle, SMFLI assumes the risk related to the future value of the property. Accordingly, operating leases have the advantage of lower lease payments compared to finance leases.


Leasebacks are contracts that entail SMFLI purchasing machinery and equipment currently owned by a customer and leasing the same asset back to the customer. The customer continues to utilize the asset it sold and is able to procure funds from the sale of the asset.


SMFLI purchases the notes and accounts receivables from customers on a nonrecourse basis. In the event receivables cannot be collected due to cases such as bankruptcy of the original debtor, our customer is not obligated to buy back the receivable, contrary to bill discounting. Factoring allows our customers to hedge credit risk of the original debtor, streamline their balance sheets, improve cash flow, and diversify fund procurement.

Sales Finance

For manufacturers and dealers, we offer leasing and deferred payment services that address customer needs for sales promotions.

  • *For more detailed tax/accounting treatment of the above-mentioned services, we encourage our customers to consult with their auditors/tax accountants. SMFLI takes no responsibility for our customers' tax/accounting treatments.
  • *It should be noted that canceling of any finance lease, operating lease, or factoring contract will be subject to a fixed penalty in addition to the repayment of outstanding principal.
  • *Delay in payment based on any finance lease, operating lease or factoring contract will be subject to overdue interest set out in the applicable contracts.

PT SMFL Leasing Indonesia Interest Rates*

Purpose of Financing All types of goods
Interest Rate Average 12.00%
  • *Disclaimer:
    The interest rates shown on this page are calculated on the basis of the current financial market conditions. Therefore, if conditions on the financial market have changed when conducting a transaction, the interest rate will be recalculated based on the condition of the financial market at the time of the transaction. The interest rate does not represent a commitment to enter into transactions with you in all matters of interest. Our commitment is subject to internal approval based on the rules of our company (including but not limited to the rules for credit appraisal).
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