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KPPU task force to probe alleged interest rate fixing among P2P lenders
The Business Competition Supervisory Commission (KPPU) is forming a task force to investigate the Indonesian Joint Funding Fintech Association (AFPI) over alleged rate fixing.
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Illustration of financial technology (Shutterstock/File)
T
he Business Competition Supervisory Commission (KPPU) is forming a task force to investigate the Indonesian Joint Funding Fintech Association (AFPI) over allegations of interest rate manipulation, after it had launched a study prompted by reports and complaints from the public about their experiences with online lenders.
Gopprera Panggabean, investigation director at the KPPU Secretariat, said in a written statement on Wednesday that the commission’s study found that the AFPI had coordinated with its members to determine its lending terms, including a fixed 0.8 percent daily interest rate for certain types of loans.
Gopprera said all AFPI members had adhered to these terms and noted that 89 AFPI members were financial technology platforms engaging in peer-to-peer (P2P) lending, according to the association’s website.
The KPPU said setting interest rates for online loans was a potential breach of Law No. 5/1999, which prohibits monopolistic practices and unfair business competition.
Its task force would conclude a preliminary investigation within 14 days, the statement said.
Deswin Nur, head of the KPPU’s public relations and cooperation bureau, confirmed that the commission was investigating the AFPI for possible interest rate fixing.
“The preliminary evidence is in hand,” Deswin said on Thursday, as reported by Tempo.
