The Financial Services Authority (OJK) recorded that the disbursement of Shariah-compliant peer-to-peer (P2P) lending loans amounted to IDR 1.10 trillion in February 2025, reflecting a 20.38% decrease compared to the same period in the previous year.

Shariah P2P Lending Disbursement Shows a Year-on-Year Decline

Mirza Adityaswara, Vice Chairman of OJK, stated that the disbursement in February 2024 stood at IDR 1.38 trillion. This indicates a notable contraction in the volume of loans distributed within the Shariah-compliant P2P lending sector.

Shariah P2P Lending Assets Decrease

As of February 2025, assets in Shariah P2P lending totaled IDR 160 billion (IDR 0.16 trillion), a decline of 5.88% compared to the same period in 2024, when assets amounted to IDR 170 billion (IDR 0.17 trillion).

Overall P2P Lending Sector Growth

On a broader scale, the OJK reported that total outstanding financing for the fintech P2P lending industry reached IDR 80.07 trillion by February 2025, reflecting a 31.06% year-on-year (YoY) growth.

Credit Default Ratio Slightly Improves but Remains Elevated

The overall credit default ratio (TWP90) for the industry stood at 2.78% in February 2025, an improvement from 2.95% in February 2024. However, it worsened compared to the 2.52% ratio recorded in January 2025.

PHOTO: FREEPIK

This article was created with AI assistance.