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View all search resultsOJK threatens ‘corrective measures’ as P2P defaults rise
The default rate of peer-to-peer lending in the fintech industry has worsened, with the ratio of 90 days past due (TWP90) loans to total loans standing at 4.33 percent in November, up from 2.52 percent in November 2024, according to Financial Authority Services (OJK) data.
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Boosting financial literacy is key to accelerating financial inclusion in Indonesia, according to the Financial Services Authority (OJK). (JP/Muthi Kautsar)
F
intech peer-to-peer (P2P) lending has seen rapid growth in recent years but is also struggling with mounting risks reflecting financial pressure among small businesses and individual borrowers.
The outstanding balance of fintech P2P lending climbed by 25.45 percent year-on-year (yoy) to Rp 94.85 trillion (US$5.6 billion) in November, according to the Financial Services Authority (OJK) data.
Over the same timeframe, the industry’s lending default rate has worsened, with the ratio of loans that are at least 90 days past due (TWP90) to total loans rising to 4.33 percent in November from 2.52 percent a year earlier.
The OJK’s supervisor for multifinance, venture capital and other financial services, Agusman, revealed that 24 P2P lending operators had recorded a TWP90 rate above the institution’s “safe” threshold of 5 percent in November, “dominated by the productive segment”.
“The OJK will continue to take corrective measures, including requesting the submission of strictly monitored action plans,” he said in a statement published on Saturday.
Agusman warned that operators failing to comply faced administrative sanctions, such as a temporary halt new loan disbursement or restrictions on accepting new lenders.
Read also: Fraud and other risks still holding back P2P lending business
