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Jakarta Post

Fintech lenders hit back at OJK

  • Rachmadea Aisyah

    The Jakarta Post

Jakarta   /   Wed, March 7 2018   /  12:16 am

Indonesia’s financial technology (fintech) players were in shock when they found out that their main regulator, the Financial Services Authority (OJK), had some disconcerting views about their businesses despite having a relatively close relationship.

Executives of peer-to-peer (P2P) lending fintech firms on Tuesday voiced their concerns about a controversial statement from OJK chairman Wimboh Santoso who reportedly said over the weekend that P2P lending platforms were “similar to loan sharks” because they charged their customers high level, double-digit lending rates.

However, fintech players argued that the high level of interest rates were common for any source of funds with risks higher than regular loans as P2P lending platforms did not require collateral, unlike conventional
banks.

“P2P platforms do not have any conflict of interest in charging lend...