OJK flags capital gaps and high TWP90 in fintech lending sector
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- Indonesia’s financial regulator is closely monitoring eight fintech lenders over capital weaknesses and high default rates, signaling tighter oversight in the growing P2P sector.
- Despite strong industry growth, OJK highlights risks in fintech lending, including inadequate capital and rising TWP90 ratios among several platforms.
- OJK urges fintech firms to improve governance and risk management as institutional funding grows and regulatory scrutiny intensifies.
Jakarta – Indonesia’s Financial Services Authority (OJK) has placed eight peer-to-peer (P2P) lending platforms under special supervision, with most cases linked to capital shortfalls and rising non-performing loans, measured by the TWP90 indicator.
Agusman, head of supervision for financing institutions, venture capital firms, microfinance institutions and other financial services entities at the OJK, said that each platform under special supervision has first been instructed to implement corrective measures in line with prevailing regulations.
These measures include meeting minimum capital requirements and improving financing quality before the regulator considers further actions, including the possibility of revoking business licenses.
“Each operator under special supervision will be directed to carry out corrective actions in accordance with applicable regulations,” Agusman said in a written statement on Monday.
Across the industry, the OJK recorded that 14 out of 94 P2P lending operators have yet to meet the minimum equity requirement of Rp 12.5 billion (around US$760,000).
Agusman noted that a company’s ability to meet minimum capital requirements depends on several factors, including business performance, future prospects, capital-raising strategies, the entry of new investors, and corporate actions such as mergers.
He added that sound corporate governance and a sustainable business model are key factors in attracting investor interest to strengthen capital.
For that reason, the OJK has urged all P2P lending operators to enhance governance, risk management, and regulatory compliance to boost investor confidence while ensuring stronger consumer protection.
On financing quality, the OJK reported that 19 lending platforms recorded TWP90 ratios above 5 percent as of April 2026.
Agusman explained that fluctuations in the number of platforms with high TWP90 ratios are influenced by financing quality and borrowers’ repayment capacity.
“The industry’s TWP90 is expected to remain manageable going forward, although it will be affected by economic dynamics and each operator’s risk management quality,” he said.
To maintain financing quality, the OJK has encouraged platforms to strengthen risk management, improve data-driven credit scoring systems, tighten collection processes, and apply prudent lending principles.
Despite these challenges, the P2P lending industry continues to show positive growth. As of April 2026, outstanding financing grew 26.11 percent year-on-year to Rp 102.07 trillion, with the industry’s TWP90 ratio recorded at 4.62 percent.
Industry profits also surged by 71.43 percent year-on-year to Rp 960 billion.
From a funding perspective, banks remain the dominant source, contributing Rp 66.25 trillion or around 75.59 percent of total industry funding. Meanwhile, individual lenders accounted for Rp 3.33 trillion.
Agusman projected that funding sources in the P2P lending industry will become more diversified, driven by the growing role of institutional investors and professional lenders.
“Operators have the potential to expand their funding base from institutional lenders to support the quality and sustainability of financing in the P2P lending industry,” he said.
Indonesianpost.com | Republika
