Improved Performance of Online Lending during Ramadhan Overshadowed by High Non-Performing Loan Risks
JAKARTA – The Financial Services Authority (OJK) has reported that the Ramadhan period through the Eid season represents a significant moment for growth in peer-to-peer lending (pindar) financing.
However, this increase in financing distribution remains overshadowed by elevated levels of non-performing loans in the fintech peer-to-peer lending sector.
Agusman, Head of Executive Supervisor of Financing Institutions, Venture Capital Companies, Micro Finance Institutions, and Other Financial Service Institutions at OJK, stated that based on historical data, pindar financing distribution in March 2024 grew 8.9 per cent on a month-to-month basis. Similarly, in March 2025, pindar financing grew 3.8 per cent monthly.
“This indicates that the Ramadhan period through the Eid season represents a momentum for increased financing distribution, aligned with rising community needs and seasonal increases in working capital for small and medium enterprises,” said Agusman in a written statement on Wednesday (11/3/2026).
According to Agusman, the 90-day overdue loan ratio (TWP90) for the pindar industry is estimated to remain below 5 per cent. The OJK currently notes 18 pindar operators with TWP90 above 5 per cent as of January 2026.
Agusman explained that non-performing financing is predominantly concentrated in productive sector disbursements. “For this reason, strengthening credit scoring and borrower verification is needed to ensure growth during the Eid season remains healthy and sustainable,” said Agusman.
He added that operators exceeding non-performing loan limits have received supervision in accordance with OJK regulations. Supervision is conducted through coaching, requests for corrective action plans, and imposition of administrative sanctions.
“The same approach applies to all operators, including Islamic pindar, with a focus including improvements to risk management, funding quality, and governance,” said Agusman.
Entjik S Djafar, General Chairman of AFPI, noted that increases in pindar financing do frequently occur approaching Eid. “We have already advised all members to remain conservative and prudent, and to strengthen existing credit control and credit scoring to make them even more robust,” said Entjik following the Pindar Industry Research Presentation and Media Breaking of Fast event on Wednesday (4/3/2026).
He added that strengthening credit supervision is important because demand for fintech lending services is estimated to continue growing at double-digit rates. “Therefore, we continue to conduct selective feasibility analysis of premises,” he said.
Based on OJK data, the aggregate non-performing loan risk rate for pindar (TWP90) stood at 4.38 per cent as of January 2026. In December 2025, the non-performing loan rate was recorded at 4.32 per cent.
For comparison, the non-performing financing rate for pindar in January 2025 was at 2.52 per cent.