OJK reports eight peer-to-peer lenders under special supervision

The Financial Services Authority (OJK) has revealed that there are currently eight online lending (P2P) providers under the authority’s special supervision, primarily due to capitalisation issues and/or high aggregate non-performing loan rates (TWP90).

Agusman, the OJK Executive Head of Supervision for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions, stated in a written response in Jakarta on Sunday that every provider under special supervision will first be directed to take remedial steps in accordance with regulations. This includes meeting minimum capital requirements and improving financing quality, before further actions are taken based on OJK’s supervisory findings, which may include the revocation of business licences.

In general, OJK noted that 14 out of 94 P2P lending providers have not yet met the minimum equity requirement of Rp12.5 billion. He added that corporate governance and business models are critical factors considered by investors when assessing capital adequacy. Consequently, all providers are encouraged to continuously strengthen governance, risk management, and compliance with applicable regulations to enhance investor confidence, industry resilience, and consumer protection. Regarding credit quality, OJK noted that 19 P2P lending providers had a TWP90 rate exceeding 5 per cent as of April 2024.