Tadpole Repayment Scheme Deemed Harmful, OJK Responds

Skema pembiayaan tadpole (kecebong) dengan nilai angsuran yang lebih besar di awal dianggap merugikan konsumen. Belakangan ini muncul skema tadpole dengan tenor yang sangat pendek, bahkan hanya 14 hari.

The Financial Services Authority (OJK) said the use of tadpole schemes or very short tenors, including 14-day tenors, must be ensured to comply with applicable regulations and to protect consumers. This includes ensuring transparency of information for borrowers and that the payment structure matches borrowers’ ability to pay, within the economic benefit limits set out in SEOJK No. 19/SEOJK.06/2025 on the Operation of P2P Lending Services (LPBBTI).

Agusman, Chief Executive for Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions and Other Financial Service Institutions (PVML) at OJK, said that in its supervision, the authority assesses the characteristics and funding mechanism as a whole, along with their conformity with applicable regulations, and not solely on the basis of tenor or a particular payment structure.

“The payment structure and all obligations must be communicated transparently, clearly and in a way that is easy for borrowers to understand before funding is agreed,” Agusman said in a statement, quoted on Thursday (8 October 2026).

He added that providers continue to be encouraged to ensure that consumers fully understand their obligations.

Tadpole schemes are offered by online lending (pinjol) providers. “Tadpole”, or kecebong in Indonesian, is the larval stage of amphibians such as frogs or toads, characterised by a large head and a body tail that narrows progressively.

Like the shape of a tadpole, tadpole financing schemes impose a larger initial instalment that shrinks in subsequent periods.