AFPI ready to appeal KPPU decision on alleged interest rate cartel

Jakarta (ANTARA) - The Indonesian Fintech Peer-to-Peer Lending Association (AFPI) has stated that it is prepared to appeal the Competition Commission (KPPU)’s decision on Thursday (26/3/2026) regarding allegations of an interest rate cartel in online loans (pindar). AFPI General Chairman Entjik S Djafar, in a statement in Jakarta on Friday, conveyed the association’s disappointment with the KPPU’s ruling. He explained that the maximum economic benefit cap at the time was guidance from the Financial Services Authority (OJK) to protect consumers from predatory lending practices and illegal online loans that charged extremely high interest rates. “Therefore, the majority of association members will appeal the KPPU’s decision,” Entjik said. Furthermore, Entjik stated that the association is continuing to coordinate with all pindar platforms regarding the legal steps to be taken. “In principle, appealing is the right of each member, but we can say that all members do not accept the decision,” he added. He explained that the upper limit on economic benefits was intended for consumer protection. In addition, he noted that no malicious intent was proven throughout the examination hearing. “We believe that the online lending industry players are in the right position by following the OJK’s guidance at that time,” Entjik said. Previously, OJK had stated that the regulation of the maximum economic benefit or interest rate cap for pindar by AFPI was part of the code of ethics (behavioural guidelines) before the issuance of SEOJK No.19/SEOJK.06/2023 on the Implementation of Peer-to-Peer Lending Services. The regulation from several years ago was OJK guidance that was subsequently affirmed in OJK Letter No. S-408/NB.213/2019 dated 22 July 2019. Regardless of the decision, AFPI stated that it still respects the applicable legal process and is committed to maintaining integrity and trust in the industry ecosystem. AFPI believes that as a rule of law, Indonesia has mechanisms that provide space for fair resolution. Therefore, the association urges its members to take steps in accordance with the applicable legal process. Entjik also emphasised that the operational activities of pindar platforms under AFPI’s umbrella continue normally. The decision does not change payment obligations under agreements, and all such obligations must still be fulfilled as required. In a separate statement on Friday, OJK stated that it respects the KPPU’s decision. The authority is also continuing to monitor developments in the industry and ensuring that every pindar operator conducts its business in accordance with applicable provisions. Meanwhile, on Thursday (26/3/2026), KPPU ruled that 97 business actors in pindar were proven to have violated Article 5 of Law No. 5 of 1999 regarding price fixing in Case No. 05/KPPU-I/2025. For the violation, the business actors were imposed with varied fines totalling Rp755 billion. Head of Public Relations and Cooperation Bureau of KPPU, Deswin Nur, stated that the majority of the respondents (52 respondents) were imposed with the minimum fine amount of Rp1 billion. The KPPU Panel concluded that there was an agreement to set interest rates and/or economic benefits carried out by the respondents. The Panel viewed that setting an upper limit on interest rates that was far above the market equilibrium level was not only non-binding and ineffective in protecting consumers but also potentially functioned as a mechanism to facilitate price coordination among business actors. In such conditions, the existence of the upper limit was seen as directing the expectations and pricing strategies of business actors, thereby encouraging the formation of aligned behaviour in setting interest rates. As a result, according to the KPPU Panel, the policy reduced the intensity of price competition and hindered competitive dynamics in the online lending market.