Non-Performing Online Lending Rate at 4.38 Percent: Reasons According to AFPI Chairman

JAKARTA — The Indonesian Fintech Association for Collaborative Financing (AFPI) says that financing disbursement rose during Ramadan and must be accompanied by stronger risk mitigation to maintain the rate of non-performing financing or 90-day past due rate (TWP90). AFPI Chairman Entjik S Djafar said the rise in online lending (pindar) financing has continued ahead of Eid al-Fitr. ‘We have urged all members to remain conservative, prudent, and to strengthen the credit control and credit scoring currently in place, which we expect to be stronger,’ he said after presenting the Pindar Industry Research and Media Iftar on Wednesday, 4 March 2026. ‘Thus we will continue to conduct feasibility analyses selectively.’ A note: based on data from the Financial Services Authority (OJK), the aggregate non-performing credit rate for pindar (TWP90) stood at 4.38 percent in January 2026. In December 2025, the non-performing level was 4.32 percent. By comparison, the NPL rate for pindar in January 2025 was 2.52 percent. Entjik explained that this occurred because two platforms were problematic. ‘The figure is very significant and large, thus it is very influential,’ he said. However, broadly, the ratio of non-performing financing, excluding problematic members, remains below 3 percent. ‘Because there are NPLs on two platforms that we all know are caused by fraud, the rise is quite sharp and very extreme,’ he said. Entjik said that if those two pindar platforms are not counted, the NPL rate might be around 2.7-2.8 percent. He urged AFPI members to stay conservative with strengthened credit control. The body also continued to prioritise credit plausibility analyses. ‘The challenge in 2026 is quite high, so we must tighten across the board, because the economy going forward is still unstable,’ he closed. For reference, OJK reported that the pindar lending industry outstanding financing in January 2026 was Rp 98.54 trillion, up 25.52 percent year-on-year (YoY) from the same period last year. In December 2025, pindar financing grew 25.44 percent YoY to Rp 96.62 trillion.