The Indonesian Financial Services Authority (OJK) introduced new regulations on January 1, 2025, regarding interest rates for peer-to-peer (P2P) lending. These updates include new daily interest rate limits for both consumptive and productive loans. The Indonesian Fintech Funding Association (AFPI) supports these changes.

The revised regulations set the maximum interest rate for consumptive loans with a tenure of up to six months at 0.3% per day. This is an increase from the previous rate of 0.2%. For productive loans, the maximum rate for loans to micro and ultra-micro businesses is set at 0.275% per day for those with a tenure of up to six months. Loans longer than six months will have a rate of 0.1%. The higher rates for short-term loans reflect their increased risk.

“Short-term funding generally carries higher risks compared to longer-term loans,” explained Entjik S. Djafar, AFPI Chairman. The goal of these changes is to manage risk while still providing fair products for both borrowers and lenders. AFPI believes these adjustments will help sustain the P2P lending sector.

The new rules also require borrowers to meet a minimum income threshold. Starting in 2027, individuals must have a monthly income of at least IDR 3 million to qualify for P2P loans. This will encourage responsible borrowing and help reduce defaults.

For micro and small businesses, the updated policy ensures access to capital while maintaining financial stability. AFPI views the revised regulations as a step toward better consumer protection. They believe that with proper risk management, P2P lending will continue to grow and support underserved populations, especially small businesses.

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