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11 P2P Lending Firms Fail to Meet Equity Requirements

09 Jan, 2025
11 P2P Lending Firms Fail to Meet Equity Requirements

Indonesia’s P2P lending sector is under regulatory scrutiny as 11 operators fail to meet the equity requirement of IDR 7.5 billion, according to the Financial Services Authority (OJK). This marks an increase from October 2024, when only 10 firms faced similar issues.

OJK’s Head of Financial Institutions Oversight, Agusman, revealed that five of these companies are in the process of applying for additional capital. He emphasized that OJK is actively pushing for compliance, either through shareholder injections, strategic investors, or potentially revoking operating licenses.

The equity requirement is mandated by OJK Regulation No. 10/POJK.05/2022 on IT-based funding services. Companies are expected to gradually increase their capital, with a final target of IDR 12.5 billion by June 2025.

In the first phase, firms needed to secure at least IDR 2.5 billion by June 2023. By June 2024, the minimum equity was raised to IDR 7.5 billion. These incremental thresholds aim to strengthen the industry’s resilience and credibility.

Agusman highlighted the importance of credible investors in meeting these benchmarks as the OJK continues monitoring compliance. In addition to equity issues, OJK imposed administrative sanctions on 27 P2P lending platforms and other financial entities in December 2024 for various regulatory violations.

Beyond P2P lending, the broader financial sector also faces challenges. Six out of 146 finance companies failed to meet the equity requirement of IDR 100 billion as of December 2024. OJK’s stringent oversight reflects its commitment to ensuring a healthy financial ecosystem.



PHOTO: INFOBANKNEWS

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