The Financial Services Authority of Indonesia (OJK) has ramped up its efforts to enhance oversight and address issues within the Peer-to-Peer (P2P) lending industry as part of its broader goal to support healthy industry growth and protect consumers. In 2024, OJK imposed 661 sanctions on P2P providers, including the revocation of licenses for four companies. This was part of a continued effort to ensure that the industry remains both accountable and transparent.

OJK’s actions are also aligned with Indonesia’s 2023-2028 Roadmap for the Development and Strengthening of Technology-Based Funding Services. This initiative is aimed at building a more robust and consumer-focused P2P lending ecosystem. By addressing regulatory issues and reinforcing the protection of lenders, OJK intends to foster sustainable growth within the fintech sector.

As part of the regulatory efforts, OJK introduced the Financial Services Authority Regulation (POJK) No. 40/2024, which aims to improve governance within the P2P sector. The regulation ensures that P2P providers are transparent with credit assessments and fully disclose the risks involved in lending, creating a safer environment for lenders.

OJK’s efforts also include developing a clearer understanding of funding risks and enhancing risk management in P2P lending operations. This is particularly important as fintech continues to grow rapidly in Indonesia. By introducing stronger regulatory measures, OJK is ensuring that the industry operates with integrity and supports the financial inclusion goals of the country.

TaniFund and Investree: Legal and Regulatory Challenges

OJK has taken significant steps to address issues with specific P2P lending companies, such as TaniFund and Investree, which have faced legal and regulatory challenges. Both companies were found to be in violation of the minimum equity requirements and failed to comply with OJK's oversight recommendations, leading to the revocation of their licenses.

TaniFund was officially shut down in August 2024 after OJK’s intervention. Following the license revocation, OJK received seven complaints regarding the company by the end of 2024. A liquidation team was formed to handle the company’s closure, and affected investors are advised to contact the liquidation team through the company’s official website for resolution. In addition, OJK reported that any criminal activities related to TaniFund are being investigated with law enforcement.

Investree, another major player in the Indonesian P2P lending market, also had its license revoked. The company has faced similar challenges regarding regulatory compliance. OJK received 85 complaints concerning Investree after its license was pulled. A general meeting of shareholders led to the appointment of a liquidation team to resolve outstanding obligations. OJK is also working with law enforcement agencies, including the police and Interpol, to investigate alleged criminal activities linked to Investree’s management.

eFishery's Status and OJK’s Oversight

While eFishery is not classified as a financial services institution and is not directly under OJK’s supervision, the regulator continues to monitor developments related to the company. eFishery, which has faced financial and operational challenges, is not subject to OJK’s authority as it is not a financial institution. However, OJK is tracking the company’s issues closely to understand how they may affect the broader financial ecosystem and stakeholders, particularly in relation to the fintech sector.

PHOTO: NOETHERA STUDIO

This article was created with AI assistance.