OJK Calls Loans Capai Rp59.38 Trillion

JAKARTA - Chief Executive of the Supervision of Financing Institutions, Ventural Capital Companies, Micro Financial Institutions and Other Financial Services Institutions (PVML) OJK Agusman said that the outstanding financing growth in fintech peer to peer (P2P) lending aka online loans (pinjol) in November 2023 was IDR 59.38 trillion.

That figure is up 18.05 percent compared to the same period last year (year on year/yoy).

"In P2P lending, outstanding financing growth in November 2023 continues to increase to 18.05 percent (yoy) with a nominal value of IDR 59.38 trillion, when compared to October 2023 around 17.66 percent (yoy)," he explained in a virtual press conference at the OJK Board of Commissioners Meeting, Tuesday, January 9, 2024.

Agusman added that the aggregated credit risk rate (TWP90) was maintained at 2.81 percent in November 2023 compared to 2.89 percent in October 2023.

According to Agusman, the high growth in loan financing shows the ongoing intermediation function and the high public need for easier and faster financial access than through banking or financing companies.

In addition, OJK continues to provide education to the public to take advantage of loans wisely.

As of December 29, 2023, there were 7 Financing Companies (PP), 9 Ventura Capital Companies (PMV), and 20 P2P Lending which had not met the minimum equity provisions.

Agusman said that OJK continues to monitor the progress of action plan realization which has received approval, both in the form of capital injection steps from PSP and from new strategic investors.

In addition, there is also an option to return the business license to the OJK.

"For P2P Lending which has not met the minimum equity provisions, OJK has issued administrative sanctions in the form of written warnings and continues to encourage organizers to take concrete steps to fulfill the minimum equity of IDR 2.5 billion," he explained.

During December 2023, OJK has imposed administrative sanctions on 35 Financing Companies, 18 Ventura Capital Companies and 16 P2P Lending organizers for violations committed against applicable regulations.

The implementation of administrative sanctions for PP and PMV consists of 25 fines, 55 written warning/reprimand sanctions and 1 suspension of business activities due to not having carried out an action plan to fulfill the minimum equity obligation as stipulated in POJK Number 35/POJK.05/2015 concerning the Implementation of Venture Capital Company Businesses.

In addition, OJK on December 18, 2023, has revoked the permit of PT Hewlett Packard Finance Indonesia (HPFI) for not implementing the recommendation of the results of the examination and did not meet the requirements for the quality of the financing receivables related to the Financing Receivable Balance (Outstanding Principal) ratio with the category of quality of non-performing financing (NPF).

"Furthermore, PT HPFI, among others, is required to settle the rights and obligations of debtors, creditors and/or funders," he concluded.