Ahead Of Ramadan, OJK Says It Can't Be Confirmed Whether It Affects Fintech Lending Distribution Or Not

JAKARTA - The Financial Services Authority (OJK) said it could not be concluded that the moment of Ramadan could affect the distribution of fintech peer to peer (P2P) lending.

Chief Executive of the Supervision of Financing Institutions, Ventura Capital Companies, Micro Financial Institutions and Other Financial Services Institutions (PVML) OJK Agusman said that in the context of approaching Ramadan and Eid, there is usually an increase in the need for additional funds by the community.

However, according to Agusman, based on the latest data, there was no increase in lending in the fintech lending industry ahead of Ramadan.

"In 2023, there was no increase in lending in the fintech industry P2P lending ahead of Ramadan. Thus, it cannot be concluded that there is an influence on the Ramadan moment on the distribution of P2P lending loans," he said in a written response, quoted on Sunday, March 10, 2024.

Based on historical data 2 years ago, Agusman said that entering Ramadan 2022, namely March 2022, loan distribution was recorded to have increased significantly. The value reached IDR 23.07 trillion in that 1 month.

For information, OJK noted that the outstanding financing of P2P lending fintech in January 2024 reached IDR 60.42 trillion. The achievement in January 2024 grew by 18.40 percent Year on Year (yoy), while in December 2023 the growth was 16.67 percent (yoy).

In addition, Agusman said the OJK continues to monitor the development of the TWP90 P2P lending industry. As of January 2024, the TWP90 figure is at the level of 2.95 percent. The OJK keeps the figure under control at below 5 percent.

"We urge all organizers to continue to pay attention to risk mitigation and strengthen credit scoring so that the quality of funding is maintained," he said.