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Jakarta Post

Wanted: High quality lenders and borrowers

  • Ade Febransyah
    Ade Febransyah

    Operations and decisions advisor at the School of Business and Economics, Prasetiya Mulya University

Jakarta   /   Mon, September 2, 2019   /  11:45 am
Wanted: High quality lenders and borrowers An employee checks the identity card of a customer at peer-to-peer lending start-up PinjamDuit in Gading Serpong, Tangerang, Banten. (The Jakarta Post/R. Berto Wedhatama)

The digital business is certainly dazzling. Just take a look at fintech lending, the growth of which has been phenomenal here in Indonesia. According to the Financial Services Authority (OJK), in the period of December 2018 to May the number of lenders increased from 207,000 to 480,000, around 131 percent. Likewise, the number of borrowers doubled from 4.3 million to 8.7 million. Meanwhile the amount of funds disbursed also grew by around 81 percent from Rp 22.6 trillion (US$1.6 billion) to Rp 40 trillion. Right now, there are 113 fintech lending companies registered with the OJK, seven of which have obtained licenses. This does not include hundreds of illegal players. Given the iron law in business: When many players enter, many will go out, who will stay in business? Like any other businesses, fintech lending will be successful if it is able to offer a match between solutions (wh...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.