KPPU Needs to Be More Careful in Its Smartar Decisions
If the existing authorities’ decisions are confusing, investment in the digital industry and imitation mind will be further away.
Business competition issues are becoming increasingly complex with the development of digital businesses. Authorities need to examine the intricacies of this business in more detail.
The Business Competition Supervisory Commission (KPPU) has determined that 97 online lending companies engaged in a loan interest cartel. KPPU imposed a total fine of IDR 755 billion. The Indonesian Peer-to-Peer Lending Association is prepared to file an appeal.
The Indonesian Joint Funding Fintech Association expressed disappointment over the KPPU panel’s ruling, which found that 97 member companies were operating an online lending interest cartel. The association is coordinating with all member companies to determine an appeal (Kompas.id, March 27, 2026).
The root of the issue in this case is that the KPPU has decided on all online lending platforms concerning the cartel of online loan interest rates. The association believes that this decision appears to be forced, as there was no collusion regarding the maximum limit of economic benefits (interest rates) that has ever been proven throughout the examination hearing.
The association also argues that the maximum limit on online loan interest (pindar), or commonly referred to as economic benefits, falls within the regulatory framework under the supervision of the Financial Services Authority (OJK). This step is taken as part of consumer protection efforts and a clear differentiation from illegal pindar practices. In this context, pindar actors are accused of engaging in loan interest cartels.
The essence of the regulation itself is protection, as there have been numerous complaints regarding the interest rates imposed on debtors. We can observe various past incidents, one of the most frequently complained about by the public is the high interest that must be paid upon maturity. If this “safeguard” is then called into question, it becomes something peculiar.
Digital business is indeed something new, and thus the regulations are still not well organized. Some areas are even left unregulated. The introduction of interest rate regulations is more of a compromise to provide some level of protection. This step may not necessarily be the best course of action. However, if we refer to the decision of the KPPU, the impact is more severe, as there will no longer be a cap on maximum interest rates, which had been a concern for the public some time ago.
We hope the KPPU (Commission for Development of Indonesian Technology) and all parties in the digital industry will be more cautious. Furthermore, Indonesia’s digital industry is currently fading as investors are leaving the country. If the decisions of existing authorities are confusing, investment in the digital industry and artificial intelligence (AI) will increasingly recede. Indonesia was once an attractive investment destination for digital platforms. Investors from various countries came and provided facilities to young Indonesians. Once again, we hope they will return to this country.
Writer:
RedaksiEditor:
Marcellus HernowoLanguage Editor:
Teguh Candra