The Financial Services Authority respects the decision of the\nBusiness Competition Supervisory Commission (KPPU), which imposed a\ntotal fine of Rp755 billion on 97 online lending companies. KPPU\nsuspects that all business actors affiliated with the Indonesian Joint\nFunding Fintech Association have entered into an agreement to set online\nloan interest rates. All respondents are suspected of violating Article\n5 of Law No.\u00a05 of 1999 concerning price fixing.<\/p>\n
Head of the Department of Supervision of Microfinance Institutions\nand Other Financial Services Institutions Adief Razali stated that the\nestablishment of the maximum online loan interest rate limit drafted by\nAFPI is a follow-up to OJK\u2019s directive in 2018. \u201cIt aims to strengthen\nconsumer protection against high interest rate practices, while\nproviding room for market mechanisms and industry innovation, as well as\ndistinguishing between legal online lending services and illegal online\nlending,\u201d he said in a written statement on Friday, 3 April 2026.<\/p>\n
In that phase, Adief explained, OJK\u2019s regulation used a market\nmechanism approach. This was in consideration of maintaining innovation\nand the development of fintech within reasonable limits. \u201cAnd providing\nspace for associations to regulate technical aspects according to the\ncharacteristics of their business models,\u201d he said.<\/p>\n
On 26 March 2026, KPPU announced that it had imposed sanctions on 97\nonline lending companies suspected of engaging in monopolistic practices\nand unhealthy business competition involving 97 online lending or\npeer-to-peer lending fintech companies. This anti-cartel commission\nsuspects that all business actors have made an agreement to set online\nloan interest rates that violates Article 5 of Law No.\u00a05 of 1999\nconcerning price fixing.<\/p>\n
In the examination of the case and evidence, the panel concluded that\nthere had been a fixing of interest rates and\/or economic benefits\ncarried out by the business actors. KPPU assesses that setting an upper\nlimit on interest rates above market equilibrium makes consumer\nprotection ineffective and does not bind business actors. This is also\nsuspected of facilitating price-fixing coordination among business\nactors.<\/p>\n
Following this decision, Adief added, OJK will continue to strengthen\nthe governance and ecosystem of online lending. This ecosystem\nstrengthening includes maintaining public trust through OJK Circular\nLetter No.\u00a019\/SEOJK.06.2025. This aims to increase transparency of costs\nand economic benefits, as well as strengthening consumer protection\nthrough creditworthiness assessments and complaint handling mechanisms.\n\u201cFunding services by P2P Lending Organisers are expected to continue\noperating normally,\u201d he said.<\/p>\n
In addition, OJK also stated that it will develop and strengthen\nongoing supervision of the online lending industry. According to Adief,\nthis step aligns with the 2023-2028 Information Technology-Based Joint\nFunding Services Roadmap. In this roadmap, supervision is carried out on\na risk-based basis (risk-based supervision) that is more granular\ntowards cost structures, marketing behaviour, and collection\npractices.<\/p>\n
Furthermore, Adief said, strengthening market conduct aspects\ncontinues to be carried out, including through enforcement of\ntransparency, prohibition of misleading information, and consumer\ntreatment standards. \u201cOngoing evaluation of provisions is also\nconducted, including regarding limitations on economic benefits,\naccompanied by cross-sector coordination to maintain a healthy and\nsustainable ecosystem,\u201d he said.<\/p>\n
KPPU\u2019s decision on the alleged unhealthy business competition is\nconsidered a blow to the fintech industry. Lecturer at the Faculty of\nEconomics, Hasanuddin University, Muhammad Syarkawi Rauf, said that\nbusinesses in this sector should play a role in the economy as an\nalternative for consumer and productive financing for the public.\n\u201cKPPU\u2019s guilty verdict is a hard blow,\u201d he said when contacted by Tempo\non Tuesday, 31 March 2026.<\/p>\n
Syarkawi, who is also a former KPPU member from 2012-2017, said that\nthe fintech industry should calculate loan interest based on the cost of\nmoney, risk, and reasonable margins from each company, rather than\nmaking agreements. According to him, the high risk borne by fintech\ncompanies aligns with setting loan interest rates that are also\nhigh.<\/p>\n
Therefore, Syarkawi said, this decision should make online lending\nbusinesses more competitive with varied interest rates from each\ncompany. \u201cSo that consumers or the public have many variations of offers\nbased on interest rates and services,\u201d he said.<\/p>\n
In response to this decision, the Indonesian Joint Funding Fintech\nAssociation expressed disappointment. AFPI General Chairman Entjik S.\nJafar said that the decision to set the maximum interest rate limit for\nloans was a directive from the Financial Services Authority. This step\nis to protect consumers from predatory lending practices and illegal\nloans that charge high interest rates. \u201cSetting the maximum economic\nbenefit or loan interest rate limit is part of efforts to protect\nconsumers and provide clear differentiation from illegal online lending\npractices,\u201d he said.<\/p>\n
Nevertheless, Entjik added, AFPI still respects the ongoing legal\nprocess. Clearly, AFPI and its members will appeal this decision. \u201cWe\ncan state that all members do not accept this decision,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ojks-explanation-on-kppus-decision-regarding-alleged-online-loan-cartel-1775616737", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }