Rp 755 Billion Fine on Online Lenders Draws Scrutiny, Threatening Access to Financing for Small-Scale Public

The Commission for the Supervision of Business Competition (KPPU) decision to impose a fine of Rp 755 billion on 97 online lending (pindar) companies has drawn significant attention. This policy is seen not only as impacting the industry but also as risking the narrowing of financing access for small-scale communities.

Several parties believe that the policy questioning interest rate restrictions could backfire. Hitherto, interest rate caps have been viewed as one way to curb lending practices that harm consumers.

Ditha Wiradiputra, Executive Director of the Institute for Competition and Business Policy Studies at the Faculty of Law, University of Indonesia (LKPU FH UI), assesses that the KPPU’s ruling is not fully supported by strong evidence. She highlights the interest rate cap regulations that were actually created for protection.

“It is somewhat intriguing when the upper interest rate limit, made to protect consumers, is instead considered the source of the problem,” she stated during an online discussion themed “KPPU Fine on 97 Pindar: Protecting Competition or Sacrificing Consumers,” quoted on Wednesday (15/4/2026).

Further concerns arise regarding the impact on society. Nailul Huda, Director of Digital Economy at Celios, warns that prohibiting interest rate regulations could narrow financial inclusion, especially in rural areas.

“If interest rate regulation is not allowed, the space for financial inclusion could become even narrower, particularly in rural areas,” he said.

According to Huda, pindar services have thus far served as an alternative for communities not reached by banking. If legal services are pressured, it is not impossible that people will turn back to seeking loans from illegal channels.

This situation is deemed risky, given that illegal loans often impose high interest rates without adequate consumer protection.