OJK Warns Banks Against Careless Fintech, P2P Lending Partnerships

Indonesia's Financial Services Authority (OJK) has warned banks against partnering with fintech firms and peer-to-peer lending platforms without adequate oversight. Speaking at the CNBC Indonesia Digital Bank Forum on 10 November, Dian Ediana Rae, Head of the OJK's Banking Supervision Executive, said banks must evaluate all cooperation arrangements with fintech partners, including regular assessments of P2P partners' performance and eligibility. Supervision of credit distribution through digital platforms should be tightened, he said, and disbursement should be suspended temporarily if a partnership portfolio's NPL ratio rises significantly. Banks must also ensure Risk Appetite Criteria compliance up to end-user credit analysis, and the regulator said it would not hesitate to take firm action.

Data cited at the forum showed the industry's 90-day tardiness rate (TWP90) rose from 4.73 percent in August to 5.36 percent in September, above the 5 percent threshold triggering mandatory measures under POJK 40/2024. Outstanding P2P loans stood at Rp106.48 trillion, up 17.02 percent year on year, while 9 of 94 operators had yet to meet the Rp12.5 billion minimum equity. The Indonesian Joint Funding Fintech Association (AFPI) responded by urging tighter credit scoring and greater use of the Fintech Data Center.