Multifinance Sluggish, P2P Lending Slows, Pegadaian Soars 58%
The Financial Services Authority (OJK) has recorded divergent growth trends in the financing institution industry up to May 2026. On one hand, multifinance financing slowed and the growth of peer-to-peer (P2P) lending began to lose momentum. On the other hand, the pawnbroking industry recorded a surge in financing distribution.
Agusman, Chief Executive of the OJK’s Supervisory Board for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions (PVML), stated that financing receivables from finance companies were recorded at Rp513.19 trillion in May 2026, growing only 1.71% year-on-year (yoy). “This growth was mainly supported by an increase in working capital financing, which grew 7.96% year-on-year,” Agusman said during a press conference on the results of the OJK’s Monthly Board of Commissioners Meeting (RDKB) on Tuesday (7/7/2026).
Amid the financing slowdown, the asset quality of the multifinance industry is considered well-maintained. The gross non-performing financing (NPF) ratio was recorded at 3.06%, while the net NPF stood at 0.85%. The gearing ratio of finance companies was 2.14 times, far below the maximum limit set at 10 times. In the venture capital industry, the financing value reached Rp16.36 trillion, growing only 0.09% yoy, reflecting still-stagnant financing activity.
Meanwhile, the peer-to-peer lending industry still recorded double-digit growth. Outstanding financing reached approximately Rp103.73 trillion in May 2026, growing 25.60% yoy. However, this growth rate slowed compared to the previous month’s 26.11% yoy. On the other hand, the default rate over 90 days (TWP90) improved to 4.42% from 4.62% in April 2026.
In contrast to multifinance and P2P lending, the pawnbroking industry recorded the highest growth. Financing distribution reached Rp163.27 trillion, surging 57.97% yoy. Agusman stated that the majority of pawnbroking financing still came from pawn products, with a value reaching Rp137.2 trillion, or approximately 84.03% of total financing.
On the regulatory front, the OJK is strengthening the regulation and supervision of the PVML sector through several policies, including the drafting of rules regarding financial reporting for P2P lending operators and the refinement of regulations in the pawnbroking sector. The OJK also revealed that 8 out of 144 finance companies have not yet met the minimum capital requirements, and 8 out of 94 P2P lending operators have not yet met the minimum equity requirement of Rp12.5 billion. All of these companies have submitted action plans to the OJK to meet the capital requirements. In terms of law enforcement, up to June 2026, the OJK had imposed administrative sanctions on 38 finance companies, 2 venture capital companies, and 14 P2P lending operators as a follow-up to supervisory and examination results.