Insurance Consortium Secures OJK Approval: Will Bad Debts in Online Loans Be Guaranteed?

Jakarta, CNBC Indonesia - The Financial Services Authority (OJK) has given the green light for the insurance industry to create products protecting against default risks in online loans (P2P lending).

The Executive Head of Insurance, Guarantee, and Pension Fund Supervision at OJK, Ogi Prastomiyono, stated that several players in the insurance sector have offered to protect default risks in peer-to-peer (P2P) lending on a limited basis.

“Currently, this guarantee is limited (to a maximum loan of) Rp5 million and is carried out through a consortium for which we have granted permission, so there is already approval for covering the risk of P2P lending defaults, but the risk is limited,” Ogi explained during a press conference in Jakarta on Monday (13/4/2026).

Additionally, OJK is directing that such insurance be targeted at productive loans.

“This includes guidance for loans that are more of a productive nature, so that it can encourage the needs of the public that cannot be financed by the banking sector to obtain alternative financing in P2P lending, with the system improving over time,” he said.

It is known that the Executive Head of Financing, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions Supervision at OJK, Agusman, stated that the online lending industry has seen outstanding financing grow by around 25% year-on-year to Rp106.9 trillion. Nevertheless, the risk level, as reflected in the TWP90, stands at 4.45%.