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P2P lending transactions total Rp 13.8 trillion in first three quarters
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An Illustration of peer-to-peer lending. (Courtesy of/dollarsandsense.sg)
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ccording to Financial Services Authority (OJK) data, transactions through peer to peer (P2P) lending totaled Rp 13.8 trillion (US$951 million) in the first three quarters of 2018, with the non-performing loan (NPL) rate recorded at 1.2 percent.
The data show that the majority, Rp 11.56 trillion, was borrowed by debtors in Java.
P2P lending transactions in 2018 have increased drastically compared to the last two years, with the OJK recording Rp 284 billion in transactions in December 2016 and Rp 2.56 trillion in December 2017.
OJK deputy commissioner Sukarela Batunaggar said in Semarang, Central Java, on Tuesday that about 160,000 P2P lenders and 2.3 million debtors were recorded in the figure.
Sukarela said the OJK would try to prevent fraudulent P2P lending practices by requiring all fintech businesses to abide by regulations issued by the OJK, in particular OJK Regulation No 13/2018 on digital finance innovation in the financial sector.
“All fintech firms are required to register with the OJK so that their presence is legally recognized. If fintech firms do not want to register with the OJK, they are not part of the healthy ecosystem,” Sukarela said as quoted by kompas.com, adding that fintech firms should register at the OJK headquarters in Jakarta. (bbn)
