OJK: Productive Loan Interest Rate Drops To 0.067 Percent Per Day By 2026

Rupiah illustration (Photo: dock. Antara)

JAKARTA - The Financial Services Authority (OJK) has set the maximum interest rate for online loans (pinjol) for productive sector funding from peer-to-peer (P2P) lending industry operators to drop gradually. The target is until 2026 to 0.067 percent per day.

These efforts were made to support the sustainability and expansion of productive economic activities in Indonesia. The loan interest rate arrangement is also aimed at protecting consumers.

"For the productive sector, we will also reduce the imposition of economic benefits by 0.1 percent in 2025, then in 2026 we will reach 0.067 percent. So, we will reduce that gradually," said Deputy Director of OJK Technology-Based Financing Business Supervision Mohammad Arfan quoting Antara.

In the Webinar on Opportunities and Fintech Challenges P2P Lending Post-Launch of SEOJK 19/2023, Arfan said the provisions were regulated in the OJK Circular Letter Number 19 of 2023 which was issued on November 10, 2023.

Meanwhile, for the consumptive sector, the OJK sets the loan interest rate at 0.3 percent per day starting in 2024, then it decreases gradually to 0.2 percent per day in 2025 and 0.1 percent per day in 2026.

Until September 2023, the performance of the fintech industry P2P lending showed good growth. Financing distributed by fintech P2P lending grew by 14.28 percent year on year (yoy) so that it reached Rp55.70 trillion.

This growth was also followed by a quality of financing risk that was maintained with an default rate (TWP 90) of 2.82 percent.

Of this amount, the portion distributed to MSMEs reached 36.57 percent. The distribution of P2P lending fintech financing to MSMEs shows the huge potential for financing needs from national MSMEs.