KPPU Fines 97 Online Loan Companies Rp755 Billion: Chronology and Positions of AFPI and OJK
The Commission for the Supervision of Business Competition (KPPU) has ruled against 97 business actors in the information technology-based money lending services sector, or fintech peer-to-peer lending, commonly known as online loans or pinjol. These companies were found to have violated Article 5 of Law No. 5 of 1999 concerning price fixing. For this violation, the online lending business actors have been imposed with various fines totalling Rp755 billion.
The case began to be heard on 14 August 2025. “Based on the examination of evidence and facts revealed in the trial, the Commission Panel concludes that there has been an agreement on the determination of interest rates and/or economic benefits carried out by the respondents,” stated the Head of the Public Relations and Cooperation Bureau of KPPU, Deswin Nur, in a statement quoted on Tuesday (31/3).
KPPU assesses that the setting of an upper limit on interest rates that is far above the market equilibrium level is not only non-binding and ineffective in protecting consumers, but also potentially functions as a mechanism that facilitates price coordination among business actors.
“In such conditions, the existence of the upper limit directs the expectations and pricing strategies of business actors, thus encouraging the formation of aligned behaviour in setting interest rates. As a result, this policy reduces the intensity of price competition and hinders competitive dynamics in the online lending market,” Deswin explained.
“Therefore, the Commission Panel imposes fines on the respondents with a total fine amount of Rp755 billion. The majority of the respondents (52 respondents) are subject to the minimum fine of Rp1 billion,” he emphasised.
In response, the Indonesian Joint Funding Fintech Association (AFPI) stated that the KPPU panel’s decision does not reflect the facts that emerged throughout the examination trial. AFPI views that KPPU is forcing itself by ruling against all online lending platforms since there was no proven collusion regarding the maximum economic benefit limit (interest rate) throughout the examination trial.
The approach that has been applied in the industry, including the maximum economic benefit limit, is said to be part of efforts to protect consumers and provide clear differentiation from illegal online loan (pinjol) practices. This is considered to be within the applicable regulatory framework under the supervision of the Financial Services Authority (OJK).
“We are certainly disappointed with this KPPU decision because the maximum economic benefit limit at that time was guidance from the Financial Services Authority (OJK) to protect consumers from predatory lending practices and illegal pinjol that charged very high interest rates at the time. Therefore, the majority of association members will appeal against the KPPU decision,” said AFPI General Chairman Entjik S. Djafar in an official statement.
Regardless of the decision, AFPI emphasises that it still respects the applicable legal process and is committed to maintaining integrity and trust in the industry ecosystem.
“We are still coordinating with all platforms regarding the legal steps to be taken. Basically, the appeal is the right of each member, but we can say that all members do not accept this decision,” Entjik stated.
“Because the upper limit on economic benefits is intended for consumer protection and no malicious intent was proven throughout the examination trial. We believe that the online lending industry actors are in the right position by following OJK’s guidance at that time,” he added.
Meanwhile, the Financial Services Authority (OJK) respects the decision issued by the KPPU Panel Chairman in Case No. 05/KPPU-I/2025.
“OJK will continue to encourage the p2p lending industry to strengthen the implementation of governance, risk management, and consumer protection to realise a healthy, integrity-based p2p lending industry that benefits society,” said the Head of the Literacy, Financial Inclusion, and Communication Department of OJK, M. Ismail Riyadi, in a statement quoted on Tuesday (31/3).