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Jakarta Post

P2P lenders create thousands of jobs, reduce poverty: Study

  • Adrian Wail Akhlas

    The Jakarta Post

Jakarta   /   Fri, November 15, 2019   /  03:15 pm
The Jakarta Post Image
Illustration of financial technology (fintech).(Shutterstock/File)

Peer-to-peer (P2P) lending platforms have created thousands of jobs and reduced poverty as the online lending companies have provided access to financing in cities and remote areas alike. According to a study conducted by local think thank Institute for Development of Economics and Finance (Indef) and the Indonesian Fintech Lenders Association (AFPI), P2P platforms have provided jobs for more than 362,000 Indonesians and reduced the poverty rate by 0.7 percent, equal to 177,000 individuals. “P2P lending enables MSMEs [micro, small and medium enterprises] to boost production and thus can directly impact the country’s gross domestic product [GDP],” said Indef researcher Izzudin Al Farras in Jakarta during the launch of the study on Monday. P2P platforms have contributed Rp 60 trillion (US$ 4.28 billion) to GDP as of June. “MSMEs then need more workers to bo...