A Total Of 19 Pinjol Have Congested Loans, This Is OJK's Explanation

Illustration (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) revealed that 19 peer-to-peer financial technology providers (fintech P2P) lending or online loans (pinjol) have a default rate (TWP) or bad credit above 5 percent in November 2023.

"Based on data for the November 2023 period, the number of P2P Lending Organizers that have TWP above 5 percent is 19 Organizers," said OJK Agusman, Chief Executive of Financing Institutions, Ventura Capital Companies, Micro Financial Institutions, and Other Financial Services Institutions. Agusman in his statement, quoted Friday 12 January 2024.

Agusman said that the OJK had asked 19 organizers to send an action plan related to the plan to reduce the value of TWP above 5 percent and is currently still in the monitoring process.

According to Agusman, the number of loan operators with bad credit above 5 percent was reduced compared to the position in October 2023 which reached 20 organizers.

Agusman explained that the change in the number of TWP90 in fintech P2P lending is always dynamic.

During the COVID-19 pandemic, OJK noted that the number of TWP90 industries was recorded as having the highest position reaching 8.88 percent in August 2020.

"After the improvement in economic conditions, the number of TWP90 continues to improve and continues to be maintained so far below 5 percent," he explained.

He said, there were several factors related to changes in TWP90, including the platform's ability to facilitate the distribution of funds so that it could affect the outstanding funding and the magnitude of funding that was included in the period of traffic jams.

"The quality of credit scoring to prospective loan recipients and the quality of the ongoing loan collection process," he said.

Another factor is the large number of collaborations with ecosystems such as the provision of credit insurance facilities and others.

In the context of consumer transparency and protection, Agusman said the OJK asked P2P lending organizers to be able to publish loan quality data so that consumers and prospective consumers can directly monitor the loan quality data of a P2P lending platform.

"OJK in the context of coaching and supervision continues to monitor changes to TWP90 for each fintech lending provider that is licensed at the OJK," he said.

In the organizers who have TWP90 above 5 percent, Agusman said the OJK took coaching action and asked them to apply for an action plan to improve bad funding.

"OJK monitors the implementation of their action plan strictly. If the conditions are worse, OJK will carry out further surveillance measures," he concluded.