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OJK treads carefully in regulating P2P lenders
The Financial Services Authority (OJK) maintains its careful approach in handling peer-to-peer (P2P) lending platforms, giving the relatively new industry time to adjust to more stringent regulations and maintaining its moratorium on new licenses.
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Illustration of financial technology (fintech) (Shutterstock/File)
T
he Financial Services Authority (OJK) is maintaining its cautious approach in handling peer-to-peer (P2P) lending platforms, giving the relatively new industry time to adjust to more stringent regulations and maintaining its moratorium on new licenses.
Fifteen P2P lending platforms had yet to meet the Rp 25 billion (US$1.01 million) capital requirement, the OJK said on Tuesday. The rule is stipulated in OJK Regulation No. 10/2022 and took effect in July.
M. “Ichsan” Ichsanudin, undersecretary for nonbanking industry supervision at the OJK, explained that the watchdog provided a transition period for platforms to gradually increase their capital, to Rp 7.5 billion and then to Rp 12.5 billion within two and three years after the regulation’s enactment, rather than demanding they achieve the 25-billion-mark immediately.
“Yes, there are 15 platforms [that have yet to meet the minimum capital requirement]. But do not ask what we are going to do about them [i.e., punish them for not complying],” Ichsan told reporters on Tuesday during a media briefing held by the OJK.
“What will we do? We will supervise them. We will tell them to raise their capital. Like it or not, they must increase their capital,” he added.
Read also: OJK’s planned rate rules could ‘kill’ P2P lenders: Observer
Indonesia’s P2P lending industry has grown significantly over the past years, with total outstanding loans rising 88.8 percent in just over a year to Rp 45.72 billion in July, OJK data show.
