PT Modal Rakyat Indonesia (Modal Rakyat), a peer-to-peer (P2P) lending company, has confirmed it meets and exceeds the minimum equity requirement set by Indonesia’s financial services authority, OJK. The company is well-positioned to continue its operations and growth, backed by a strong cash position.

Christian Hanggara, the CEO of Modal Rakyat, emphasized that the company’s focus on prudent and effective financial management has allowed it to fulfill its regulatory obligations. According to Hanggara, the company’s strategy includes regular financial evaluations, strong cash flow management, and maintaining a positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).

OJK has set a minimum equity requirement of IDR 7.5 billion for P2P lending companies. While many companies in the sector have struggled to meet these requirements, Modal Rakyat has positioned itself as a leader, with its strong financial foundation allowing it to continue operations without capital constraints. "The company is in a strong cash position, and there are no capital challenges," said Hanggara.

Despite this solid financial footing, Hanggara acknowledged the cautious stance of many investors and venture capital firms in the current macroeconomic climate. Over the past year, strategic investments in P2P lending companies have been sparse, creating pressure on firms to find alternative solutions to strengthen their equity. This has made it difficult for many players in the industry to achieve long-term profitability and meet regulatory capital requirements.

Modal Rakyat, however, remains open to strategic investment opportunities to fuel its growth. Hanggara noted that while venture capital investments have slowed, the company has been focused on growing its business organically, ensuring that it can self-manage and top up its capital when necessary.

OJK’s regulations have put significant pressure on fintech companies in Indonesia. While 10 out of 97 P2P lenders have yet to meet the IDR 7.5 billion equity requirement, OJK is actively working with these companies to support their capital-raising efforts. Some are already in the process of securing additional investments. OJK also continues to enforce compliance measures, imposing administrative sanctions on 62 P2P lenders in January 2025 to encourage good governance, caution, and adherence to industry standards.

In the face of regulatory pressure and investment challenges, Modal Rakyat has shown that a solid financial foundation and a strategic approach to equity management can ensure sustainability in Indonesia's evolving fintech landscape.

SOURCE: BISNIS.COM | PHOTO: 123RF

This article was created with AI assistance.