YLKI asks for Tadpole loan scheme to be reviewed, assessed as potentially burdening consumers

JAKARTA - The Indonesian Consumer Institute Foundation (YLKI) asked the tadpole online loan (pinjol) installment scheme to be reviewed because it was considered potentially burdening consumers.

For information, this scheme generally offers a short tenor with large installments at the beginning so that it is considered to increase the risk of default if it is not accompanied by transparent information.

YLKI Executive Secretary Rio Priambodo said that loan organizers should provide a wider range of tenor options according to consumer payment ability, not just offer short-term tenors.

"On the other hand, all information regarding interest, fees, total payment, and loan risks must be delivered transparently so that consumers can make informed decisions," he said in a written statement, July 17.

The statement was made by YLKI in response to a complaint published on the Mediakonsumen.com website on June 30, 2026 regarding alleged fraud by a staff member of the PinjamDuit loan application.

In the complaint, the victim admitted that he was promised a loan disbursement of IDR 11.4 million with installments of around IDR 1.4 million per month for one year.

However, after the funds were deposited into the account, the victim received a bill of around IDR 10.8 million which had to be paid within 14 days.

The total payment obligation mentioned reached around Rp. 18 million, while the person who offered the loan was reported to have deleted the conversation and cut off communication.

Rio explained that in the tadpole scheme, daily interest can soar as high as 6 percent to 10 percent per day or more than 1000 percent per year.

In fact, he continued, the Financial Services Authority (OJK) has set a maximum limit of legal loan interest of 0.3 percent per day.

In line with YLKI, the Executive Director of the Indonesia ICT Institute Heru Sutadi said the tadpole scheme needed to be scrutinized because it had the potential to burden consumers if product information was not clearly conveyed.

"Platforms have a full responsibility to ensure that all product information is delivered transparently, accurately, and not misleading. Transparency is not enough to just list the terms and conditions, but also to ensure that consumers understand the total cost, interest, tenor, and risks to be borne. Important information must be displayed prominently before the transaction is carried out, not hidden in documents that are difficult to understand," he said.

YLKI and the Indonesia ICT Institute also asked the Financial Services Authority (OJK) to strengthen supervision of loan providers by prioritizing consumer protection and transparency principles.

Both also encourage the OJK to take action against organizers who use misleading information or do not provide adequate explanations to consumers.

On the other hand, the General Chair of the Indonesian Joint Funding Fintech Association (AFPI) Entjik S Djafar previously stated that the tadpole scheme is still in demand by the public, especially small traders and ultra-micro business actors who need financing in small and short-term nominal.

According to him, the level of complaints against the scheme is also relatively low.

Until now, OJK is still allowing the implementation of the tadpole scheme by legal lending platforms as long as they meet applicable provisions, including not exceeding the maximum interest limit, applying the principle of transparency to users, and maintaining a 90-day default rate (TWP90) below 5 percent.