The Pindar Industry as Financial Infrastructure, Inclusion, and Indonesia's Economic Growth

JAKARTA — The online lending industry (pindar) in Indonesia is increasingly confirming its transformation from merely a financing alternative into a piece of strategic financial infrastructure for the national economy. No longer merely a complement to the banking system, pindar now appears as one of the financial infrastructures that supports household liquidity, expands financial inclusion, and stimulates economic activity in segments that have long been beyond the reach of banks. The transformation is reflected in Katadata Insight Center’s latest research report titled ‘From Alternative to Imperative: The Vital Role of the Pindar Industry for Indonesia’s Digital Economy’. The research was produced through analysis of national data and surveys of hundreds of micro, small and medium enterprises (MSMEs) receiving funding from pindar platforms. As of August 2025, the Financial Services Authority (OJK) reports 25.5 million active loan recipients with industry outstanding amounting to Rp 87.49 trillion, a 21.46 percent year-on-year growth. Entjik S. Djafar, Chair of the Indonesian Association of Fintech Lenders (AFPI), said this data confirms that pindar is no longer an alternative option, but has become part of the national financing infrastructure. ‘Both as a buffer for household liquidity and as a catalyst for business growth, especially for MSMEs,’ he said at the Industry Pindar Research Briefing and Iftar with Media in Jakarta, on Wednesday, 4 March 2026. In the last two years, the research notes a shift in the composition of industry financing. The share of productive loans fell from about 30 percent in late 2024 to around 20 percent by mid-August 2025. Kuseryansyah, Head of AFPI’s Public Relations, argued that this condition actually underscores the important role of consumer funding as a buffer for household liquidity amid the challenges of a slower economy. In macroeconomic terms, household consumption accounts for around 52–58 percent of Indonesia’s Gross Domestic Product (GDP) in the last five years. ‘When productive financing slows, preserving household purchasing power is key to preventing domestic demand from falling. This is where multipurpose pindar financing functions as a stabiliser,’ he said. However, in practice, Kus said, pindar’s multipurpose products are often used to sustain daily productivity, such as communication and mobility for work. In other words, consumer financing is not always non-productive, because its use still contributes to economic movement and value creation. Going further, the research found that not all consumer financing is non-productive. Some funds are used for functional needs that support productivity, such as communication, transport, and mobility for work. With a multiplier effect on trade, transport, and telecommunications sectors, this funding creates a ripple effect on national output, income and employment absorption. On the productive side, pindar’s contribution to the business sector remains significant. By August 2025, outstanding financing to MSMEs stood at Rp 29.64 trillion, or about 33.83 percent of the industry’s total. A national survey of 309 MSME players across 15 sectors shows pindar has become one of the main sources of funding due to fast disbursement and easy application processes. 69.3 percent of respondents cited disbursement speed as the main advantage, while 66.3 percent appreciated the straightforward process. This article is part of Lestari KG Media, an initiative to accelerate the Sustainable Development Goals. More