OJK Respects KPPU's Decision on Alleged Online Loan Interest Rate Cartel

Jakarta (ANTARA) - The Financial Services Authority (OJK) states that it is observing and respecting the decision issued by the Business Competition Supervisory Commission (KPPU) on Thursday (26/3), regarding allegations of violations in the cartel of online loan interest rates (pindar). In that decision, the KPPU Panel declared all respondents legally and convincingly proven to have violated Article 5 of Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unhealthy Business Competition. “OJK will continue to monitor developments in the industry and ensure that every LPBBTI organiser conducts its business activities in accordance with applicable provisions, to maintain stability in the financial services sector and increase public confidence in digital financial services,” said Head of the Department of Literacy, Financial Inclusion, and Communication of OJK, M. Ismail Riyadi, in his statement in Jakarta on Friday. Furthermore, OJK states that it will continue to encourage the pindar industry to strengthen the implementation of governance, risk management, and consumer protection to realise a healthy, integrity-based pindar industry that benefits society. This is in line with the mandate of Law No. 21 of 2011 on OJK and Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (P2SK Law). OJK also encourages pindar organisers to continue contributing to supporting government strategic programmes, particularly in increasing financial inclusion for the MSME sector and realising equitable national economic development. In strengthening the pindar industry, OJK has issued OJK Circular Letter (SEOJK) No. 19 of 2025 on the Implementation of Information Technology-Based Joint Funding Services (LPBBTI). Those provisions, among others, regulate the limits on the economic benefits that can be imposed by pindar organisers on fund recipients, as an effort to ensure healthy, transparent business practices oriented towards consumer protection. In addition, OJK has also issued provisions regulating governance, risk management, the health level of pindar organisers, and compiled the LPBBTI Development and Strengthening Roadmap for 2023-2028. These steps aim to improve the effectiveness and efficiency of supervision, encourage better industry governance, and strengthen consumer and public protection. Previously, on Thursday (26/3), KPPU decided that 97 business actors in information technology-based lending services (fintech P2P lending or pindar) were proven to have violated Article 5 of Law No. 5 of 1999 regarding price fixing in Case No. 05/KPPU-I/2025. For that violation, the online lending business actors were imposed various fines totalling Rp755 billion. Head of the Public Relations and Cooperation Bureau of KPPU, Deswin Nur, in his press release, conveyed that the majority of respondents (52 respondents) were imposed the minimum fine amount, namely Rp1 billion. In imposing those administrative fines, the KPPU Panel stated that it had considered various aggravating and mitigating factors, including the cooperative attitude of the respondents and the management of the Indonesian Joint Funding Fintech Association (AFPI) for the 2019-2023 period. In addition to fine sanctions, the Panel also deemed it necessary for KPPU to provide recommendations to OJK to optimise supervisory functions over fintech P2P lending in accordance with healthy business competition principles. The KPPU Panel concluded that there had been an agreement on setting interest rates and/or economic benefits carried out by the respondents, based on the examination of evidence and facts revealed in the trial. The Panel views that setting an upper limit on interest rates that is far above the market equilibrium level not only is non-binding and ineffective in protecting consumers but also potentially functions as a mechanism that facilitates coordination of price setting among business actors. In such conditions, the existence of the upper limit is seen as directing the expectations and pricing strategies of business actors, thus encouraging the formation of aligned behaviour in setting interest rates. As a result, according to the KPPU Panel, this policy reduces the intensity of price competition and hinders competitive dynamics in the online lending market.