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View all search resultsAuthorities allege the executives of PT Lunaria Annua Teknologi (LAT), the operator of KoinWorks, manipulated collateral documents and falsified trade invoices to secure massive loans from state-owned lender BRI.
The bad loan rate began to spike in November 2025 and now hovers above 4 percent, while the fintech sector has come under pressure recently following the KPPU's ruling on monopolistic practices related to interest rates.
The Indonesian Fintech Association (AFPI) has expressed disappointment over the ruling, saying that the maximum economic benefit set by its members was determined under a directive from the Financial Services Authority (OJK).
Despite a decade of tightening rules on what is allowed and what is not in Indonesia’s burgeoning peer-to-peer (P2P) lending industry, the fintech segment meant to improve financial inclusion is still riddled with risks for both lenders and borrowers.
The Financial Services Authority (OJK) has explained new rules for innovative credit scoring (ICS) to assess the creditworthiness of people and small businesses that lack traditional credit histories.
The decline in P2P lending practices is attributed to a variety of social issues. A problem commonly brought up is the debt collection methods, which sometimes involve prohibited measures such as intimidation and violence. Moreover, there is growing concern over high interest rates that affect consumers.
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