AFPI Denies Allegations Of Cartel Practice, Reveals Reasons For Determination Of Pinjol Interest Limits

JAKARTA - The Indonesian Joint Funding Fintech Association (AFPI) has clarified the alleged practice of online loan interest cartels (Pinjol) filed by the Business Competition Supervisory Commission (KPPU).

AFPI confirmed that the maximum interest limit first published in the Code of Conduct in 2018 and is now revoked and is no longer valid.

This effort was also made as an effort to encourage a very high reduction in interest at that time, as well as to distinguish legal loan services (Pindar) from illegal lending practices that were not monitored.

At that time, online loan interest could reach more than 1% per day, some even double to three times. The maximum interest limit is intended so that the legal platform does not wear clothes," explained Sunu Widyatmoko, Secretary General of AFPI for the 2019 period. 2023 in his official statement.

Meanwhile, AFPI Secretary General, Ronald Andi Kasim, emphasized that currently, many lending platforms actually set interest below the maximum interest limit, such as 0.6%, 0.5%, even 0.4% per day.

Ronald emphasized that interest is determined individually by each platform based on risks, types of loans (Multiguna, Productive, or Sharia), as well as agreements between lenders (clenders) and borrowers.

However, after the Financial Sector Development and Strengthening Law (UUP2SK) was passed and the OJK issued SEOJK No. 19 of 2023 which explicitly regulates fintech loan interest, AFPI immediately lifted the maximum interest limit.

What we are doing is a form of industry responsibility. We want the borrower to get a lighter interest, without lowering the interest of the lender that distributes the funds," he said.

AFPI affirms its commitment to continue to support the formation of a healthy digital funding ecosystem, in accordance with the OJK policy direction, and continues to distinguish legal Pindar and illegal loans.