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AFPI projects conservative growth amid macro woes, stringent rules
Fintech lending association projects between 5 and 7 percent growth for the sector this year.
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AdaKami managing director Bernardino Moningka Vega (second left) speaks to reporters along with Indonesian Fintech Association (AFPI) chairman Entjik S. Djafar (second right), AdaKami brand manager Jonathan Kriss (left) and AFPI corporate communication director Andrisyah Tauladan during AdaKami's media gathering and halalbihalal event in Jakarta on Monday, April 29. (JP/Ruth Dea Juwita)
T
he peer-to-peer (P2P) lending sector is expecting to see slower growth this year, driven by weaker macroeconomic conditions and more stringent regulation from the Financial Services Authority (OJK), the association has said.
Indonesian Fintech Association (AFPI) chairman Entjik S. Djafar said on Monday he expected between 5 and 7 percent growth for the sector this year, citing a push by authorities to crack down on illegal companies.
“We are seeing an increase in fraud and scams [by companies posing as P2P lending companies] and thus we are improving our credit risk-control analysis,” Entjik told reporters during a media gathering.
“As times change, the way to get credit is becoming more revolutionary, we also have to update and improve our risk mitigation,” Entjik said.
The AFPI found that a large number of P2P lending platforms operate illegally in the country, meaning that only a small proportion of them have actually obtained licenses from the OJK.
Read also: OJK to legitimize firms that credit-score the unbanked
“This is very worrying. We want all people to switch to licensed fintech so that our economy is healthy,” Entjik said.
