OJK's Explanation on KPPU's Decision Regarding Alleged Online Loan Cartel
The Financial Services Authority respects the decision of the Business Competition Supervisory Commission (KPPU), which imposed a total fine of Rp755 billion on 97 online lending companies. KPPU suspects that all business actors affiliated with the Indonesian Joint Funding Fintech Association have entered into an agreement to set online loan interest rates. All respondents are suspected of violating Article 5 of Law No. 5 of 1999 concerning price fixing.
Head of the Department of Supervision of Microfinance Institutions and Other Financial Services Institutions Adief Razali stated that the establishment of the maximum online loan interest rate limit drafted by AFPI is a follow-up to OJK’s directive in 2018. “It aims to strengthen consumer protection against high interest rate practices, while providing room for market mechanisms and industry innovation, as well as distinguishing between legal online lending services and illegal online lending,” he said in a written statement on Friday, 3 April 2026.
In that phase, Adief explained, OJK’s regulation used a market mechanism approach. This was in consideration of maintaining innovation and the development of fintech within reasonable limits. “And providing space for associations to regulate technical aspects according to the characteristics of their business models,” he said.
On 26 March 2026, KPPU announced that it had imposed sanctions on 97 online lending companies suspected of engaging in monopolistic practices and unhealthy business competition involving 97 online lending or peer-to-peer lending fintech companies. This anti-cartel commission suspects that all business actors have made an agreement to set online loan interest rates that violates Article 5 of Law No. 5 of 1999 concerning price fixing.
In the examination of the case and evidence, the panel concluded that there had been a fixing of interest rates and/or economic benefits carried out by the business actors. KPPU assesses that setting an upper limit on interest rates above market equilibrium makes consumer protection ineffective and does not bind business actors. This is also suspected of facilitating price-fixing coordination among business actors.
Following this decision, Adief added, OJK will continue to strengthen the governance and ecosystem of online lending. This ecosystem strengthening includes maintaining public trust through OJK Circular Letter No. 19/SEOJK.06.2025. This aims to increase transparency of costs and economic benefits, as well as strengthening consumer protection through creditworthiness assessments and complaint handling mechanisms. “Funding services by P2P Lending Organisers are expected to continue operating normally,” he said.
In addition, OJK also stated that it will develop and strengthen ongoing supervision of the online lending industry. According to Adief, this step aligns with the 2023-2028 Information Technology-Based Joint Funding Services Roadmap. In this roadmap, supervision is carried out on a risk-based basis (risk-based supervision) that is more granular towards cost structures, marketing behaviour, and collection practices.
Furthermore, Adief said, strengthening market conduct aspects continues to be carried out, including through enforcement of transparency, prohibition of misleading information, and consumer treatment standards. “Ongoing evaluation of provisions is also conducted, including regarding limitations on economic benefits, accompanied by cross-sector coordination to maintain a healthy and sustainable ecosystem,” he said.
KPPU’s decision on the alleged unhealthy business competition is considered a blow to the fintech industry. Lecturer at the Faculty of Economics, Hasanuddin University, Muhammad Syarkawi Rauf, said that businesses in this sector should play a role in the economy as an alternative for consumer and productive financing for the public. “KPPU’s guilty verdict is a hard blow,” he said when contacted by Tempo on Tuesday, 31 March 2026.
Syarkawi, who is also a former KPPU member from 2012-2017, said that the fintech industry should calculate loan interest based on the cost of money, risk, and reasonable margins from each company, rather than making agreements. According to him, the high risk borne by fintech companies aligns with setting loan interest rates that are also high.
Therefore, Syarkawi said, this decision should make online lending businesses more competitive with varied interest rates from each company. “So that consumers or the public have many variations of offers based on interest rates and services,” he said.
In response to this decision, the Indonesian Joint Funding Fintech Association expressed disappointment. AFPI General Chairman Entjik S. Jafar said that the decision to set the maximum interest rate limit for loans was a directive from the Financial Services Authority. This step is to protect consumers from predatory lending practices and illegal loans that charge high interest rates. “Setting the maximum economic benefit or loan interest rate limit is part of efforts to protect consumers and provide clear differentiation from illegal online lending practices,” he said.
Nevertheless, Entjik added, AFPI still respects the ongoing legal process. Clearly, AFPI and its members will appeal this decision. “We can state that all members do not accept this decision,” he said.