As Eid 2026 Approaches, OJK Predicts Increased Demand for Online Loans and Pawn Services

Jakarta — Indonesia’s Financial Services Authority (OJK) forecasts that demand for online loans (pinjol), multifinance, and pawn services will increase during Ramadan and Eid al-Fitr 2026 as household financing needs rise.

Agusman, Head of the OJK’s Executive for Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions, stated that historically this period represents a significant moment for increased financing distribution across various non-bank financial services sectors.

He detailed that during the Ramadan and Eid periods in March 2024 and 2025, online loan disbursements increased by 8.9 per cent and 3.8 per cent month-on-month respectively.

“This demonstrates that the Ramadan period leading up to Eid becomes a momentum for increased financing distribution, coinciding with rising household needs and seasonal additional working capital for small and medium enterprises (SMEs),” Agusman said in a written response to the OJK’s February 2026 RDKB session on Thursday (5 March 2026).

Despite the anticipated increase in financing distribution, the OJK assesses that the quality of funding in the online loan industry will remain stable. The rate of defaults exceeding 90 days (TWP90) is projected to remain below the regulatory threshold of 5 per cent.

To maintain financing quality during the Eid momentum, industry players must strengthen risk assessment processes for prospective borrowers, both in credit scoring and borrower verification.

The increase in multifinance disbursements is accompanied by maintained financing quality. This is evident from the gross non-performing loan (NPF) rate of 2.45 per cent in March 2024 and 2.71 per cent in March 2025.

“This shows that the Eid momentum generally drives increased financing while maintaining credit quality,” he said.

Similarly, an upward trend in financing distribution is visible in the pawn industry. Based on historical data, pawn company disbursements in March 2024 grew 1.78 per cent month-on-month and in March 2025 increased 1.66 per cent month-on-month.

“This demonstrates that the Ramadan period leading up to Eid becomes a momentum for growth in financing distribution, as household demand for pawn services increases,” he noted.