The Commission for the Supervision of Business Competition (KPPU) has\nruled against 97 business actors in the information technology-based\nmoney lending services sector, or fintech peer-to-peer lending, commonly\nknown as online loans or pinjol. These companies were found to have\nviolated Article 5 of Law No.\u00a05 of 1999 concerning price fixing. For\nthis violation, the online lending business actors have been imposed\nwith various fines totalling Rp755 billion.<\/p>\n
The case began to be heard on 14 August 2025. \u201cBased on the\nexamination of evidence and facts revealed in the trial, the Commission\nPanel concludes that there has been an agreement on the determination of\ninterest rates and\/or economic benefits carried out by the respondents,\u201d\nstated the Head of the Public Relations and Cooperation Bureau of KPPU,\nDeswin Nur, in a statement quoted on Tuesday (31\/3).<\/p>\n
KPPU assesses that the setting of an upper limit on interest rates\nthat is far above the market equilibrium level is not only non-binding\nand ineffective in protecting consumers, but also potentially functions\nas a mechanism that facilitates price coordination among business\nactors.<\/p>\n
\u201cIn such conditions, the existence of the upper limit directs the\nexpectations and pricing strategies of business actors, thus encouraging\nthe formation of aligned behaviour in setting interest rates. As a\nresult, this policy reduces the intensity of price competition and\nhinders competitive dynamics in the online lending market,\u201d Deswin\nexplained.<\/p>\n
\u201cTherefore, the Commission Panel imposes fines on the respondents\nwith a total fine amount of Rp755 billion. The majority of the\nrespondents (52 respondents) are subject to the minimum fine of Rp1\nbillion,\u201d he emphasised.<\/p>\n
In response, the Indonesian Joint Funding Fintech Association (AFPI)\nstated that the KPPU panel\u2019s decision does not reflect the facts that\nemerged throughout the examination trial. AFPI views that KPPU is\nforcing itself by ruling against all online lending platforms since\nthere was no proven collusion regarding the maximum economic benefit\nlimit (interest rate) throughout the examination trial.<\/p>\n
The approach that has been applied in the industry, including the\nmaximum economic benefit limit, is said to be part of efforts to protect\nconsumers and provide clear differentiation from illegal online loan\n(pinjol) practices. This is considered to be within the applicable\nregulatory framework under the supervision of the Financial Services\nAuthority (OJK).<\/p>\n
\u201cWe are certainly disappointed with this KPPU decision because the\nmaximum economic benefit limit at that time was guidance from the\nFinancial Services Authority (OJK) to protect consumers from predatory\nlending practices and illegal pinjol that charged very high interest\nrates at the time. Therefore, the majority of association members will\nappeal against the KPPU decision,\u201d said AFPI General Chairman Entjik S.\nDjafar in an official statement.<\/p>\n
Regardless of the decision, AFPI emphasises that it still respects\nthe applicable legal process and is committed to maintaining integrity\nand trust in the industry ecosystem.<\/p>\n
\u201cWe are still coordinating with all platforms regarding the legal\nsteps to be taken. Basically, the appeal is the right of each member,\nbut we can say that all members do not accept this decision,\u201d Entjik\nstated.<\/p>\n
\u201cBecause the upper limit on economic benefits is intended for\nconsumer protection and no malicious intent was proven throughout the\nexamination trial. We believe that the online lending industry actors\nare in the right position by following OJK\u2019s guidance at that time,\u201d he\nadded.<\/p>\n
Meanwhile, the Financial Services Authority (OJK) respects the\ndecision issued by the KPPU Panel Chairman in Case\nNo.\u00a005\/KPPU-I\/2025.<\/p>\n
\u201cOJK will continue to encourage the p2p lending industry to\nstrengthen the implementation of governance, risk management, and\nconsumer protection to realise a healthy, integrity-based p2p lending\nindustry that benefits society,\u201d said the Head of the Literacy,\nFinancial Inclusion, and Communication Department of OJK, M. Ismail\nRiyadi, in a statement quoted on Tuesday (31\/3).<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/kppu-fines-97-online-loan-companies-rp755-billion-chronology-and-positions-of-afpi-and-ojk-1774943671", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }