{
    "success": true,
    "data": {
        "id": 1645131,
        "msgid": "kppu-decision-deemed-not-aligned-with-consumer-expectations-on-low-pinjam-interest-rates-heres-the-explanation-1774925541",
        "date": "2026-03-31 08:31:53",
        "title": "KPPU Decision Deemed Not Aligned with Consumer Expectations on Low Pinjam Interest Rates, Here's the Explanation",
        "author": "",
        "source": "VIVA",
        "tags": "bisnis",
        "topic": "Regulation",
        "summary": "The Indonesian Competition Commission (KPPU) has fined 97 peer-to-peer lending fintech companies a total of Rp755 billion for allegedly colluding to set interest rates, a decision criticised by the Center of Economic and Law Studies (Celios) for overlooking the regulatory vacuum that prompted the industry association to cap rates in response to high illegal lending practices. Celios argues that the KPPU should have considered the historical context where unregulated rates were excessively high, burdening consumers, before the Financial Services Authority (OJK) intervened with formal caps via ethical guidelines and circulars. Meanwhile, the Indonesian Fintech Peer-to-Peer Lending Association (AFPI) denies any cartel agreement, asserting that the caps were mandated by OJK to protect consumers from predatory lending.",
        "content": "<p>Jakarta, VIVA \u2013 The Center of Economic and Law Studies (Celios) has\nresponded to the decision by the Business Competition Supervisory\nCommission (KPPU) to impose a total fine of Rp755 billion on 97 online\nlending (fintech peer-to-peer lending) companies for proven collusion in\nsetting interest rates.<\/p>\n<p>Celios Digital Economy Director, Nailul Huda, opined in the suspected\nPinjam interest rate cartel case that the KPPU should trace the case\nperiod to clearly examine the events and conditions at that time.<\/p>\n<p>\u201cBefore the AFPI set the maximum Pinjam interest rate cap, Pinjam\ninterest rates were set by each company, tending to be higher. The\npublic complained loudly. If traced back, the association could decide\non the maximum interest rate due to a regulatory vacuum,\u201d said Nailul,\nquoted from his statement in Jakarta, Tuesday, 31 March 2026.<\/p>\n<p>Furthermore, Nailul questioned whether the KPPU has calculated the\nbalance of Pinjam interest rates during the regulatory vacuum. \u201cFrom\nvarious reports, the public complained that Pinjam interest rates were\ntoo high and tended to be reckless, especially illegal online loans,\u201d he\nconcluded.<\/p>\n<p>Due to this regulatory vacuum, the Financial Services Authority (OJK)\neventually regulated the upper limit of Pinjam interest rates to avoid\nexcessively high rates that burden the public.<\/p>\n<p>This regulation was initially outlined in the Code of Ethics\n(Behavioural Guidelines) of the Indonesian Joint Funding Fintech\nAssociation (AFPI) before being clarified through OJK Circular Letter\n(SE) No.19\/SEOJK.06\/2023, and now updated through SEOJK\nNo.19\/SEOJK.06\/2025.<\/p>\n<p>These provisions, among others, regulate the limits on economic\nbenefits that can be imposed by Pinjam Providers on Fund Recipients, as\nan effort to ensure healthy, transparent business practices oriented\ntowards consumer protection.<\/p>\n<p>In a separate opportunity, AFPI General Chairman, Entjik S. Djafar,\nemphasised that there has never been proven joint agreement regarding\nthe setting of maximum economic benefits or interest rates among\nindustry players.<\/p>\n<p>\u201cWe are certainly disappointed with this KPPU decision because the\ncurrent maximum economic benefits limit is a directive from the\nFinancial Services Authority (OJK) to protect consumers from predatory\nlending practices or illegal online loans that charged very high\ninterest rates at that time,\u201d said Entjik.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/kppu-decision-deemed-not-aligned-with-consumer-expectations-on-low-pinjam-interest-rates-heres-the-explanation-1774925541",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}