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Fintech

Indonesia’s P2P Lending Growth: Rp75.6 Trillion in November 2024

08 Jan, 2025
Indonesia’s P2P Lending Growth: Rp75.6 Trillion in November 2024

As of November 2024, the outstanding financing in Indonesia’s peer-to-peer (P2P) lending market reached Rp75.6 trillion, according to the Financial Services Authority (OJK), based on the information reported by Bisnis.com.

This marks a 27.32% year-on-year (YoY) increase in financing, reflecting the growing popularity of online lending platforms in the country. Although this growth rate slightly decreased compared to the 29.23% rise recorded in October 2024, it still signifies a robust upward trend in the fintech sector.

OJK’s Executive Head of Non-Bank Financial Institutions, Agusman, highlighted the steady growth in the P2P lending sector during a virtual press conference on January 7, 2025. While the growth rate showed a slight decline from the previous month, it continues to reflect a thriving industry.

Additionally, the risk of bad credit, measured by the TWP90 (non-performing loan ratio), has remained under control, standing at 2.52% in November 2024. This marks an improvement compared to the previous year’s figure of 2.81%. The ratio remains well below the OJK’s threshold of 5%, although it did see a slight increase from 2.37% in October 2024.

OJK has been proactive in regulating the P2P lending and Buy Now, Pay Later (BNPL) sectors to ensure their sustainable growth. One key regulation introduced is POJK Number 40 of 2024, which covers peer-to-peer lending services based on information technology.

This regulation, along with adjustments to the daily interest rate for fintech lending, aims to support the industry’s development while protecting consumers.

In addition, new rules implemented on January 1, 2025, set a cap on maximum daily interest rates and include minimum income and age requirements for borrowers and lenders. These adjustments are expected to foster financial growth and improve consumer protection.

For BNPL schemes, OJK has also tightened regulations, particularly focusing on age and income requirements for users to reduce the risk of consumer debt traps.



SOURCE: BISNISCOM | PHOTO: SHUTTERSTOCK

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