LPEM FEB UI: Online Loans Serve as a Cushion for Indonesians Facing Economic Pressures
The existence of online loans (pinjol) in society is akin to two sides of a coin. This financing service is viewed as a financial trap due to high interest rates, while on the other hand, it plays a crucial role as an economic cushion helping people endure pressures.
Pinjol offers instant disbursement times and easier administrative requirements compared to conventional banks. Regrettably, debtors often face relatively high interest rates, leading many users to become trapped in a debt cycle that worsens their financial condition.
Meanwhile, research by the Institute for Economic and Social Research at the Faculty of Economics and Business, University of Indonesia (LPEM FEB UI) reveals that pinjol can function as an economic buffer for society in facing economic pressures. In this study, LPEM FEB UI examined AdaKami as a case study to assess the role of pinjol.
The study uncovers that pinjol serves as a financial cushion helping society manage financial risks and maintain household consumption. Access to digital financing assists households in sustaining consumption, managing financial risks, and avoiding the sale of productive assets amid uncertain economic conditions.
The preservation of household consumption, as a driver of national economic growth with a contribution of more than 54 percent to Gross Domestic Product (GDP), clearly provides positive effects on the Indonesian economy.
LPEM FEB UI researcher Prani Sastiono stated that 24.51 percent of AdaKami borrowers indicated that without the loan, they would have to use savings or sell assets to meet needs. This loan is also utilised to face economic shocks due to layoffs, severe illnesses, or the death of family members, while still managing risks prudently.
“With better risk management, households facing unexpected expenses do not have to borrow from moneylenders or other sources with higher interest rates and can maintain savings stability,” said Prani Sastiono, quoted from a written statement on Friday, 1 May 2026.
She added that pinjol is often used to cope with economic shocks such as layoffs, severe illnesses, and the death of family members. Access to this financing is also seen as helping society avoid extreme decisions that could have long-term impacts.