OJK Will Increase The Maximum Limit On Productive Funding With LPBBTI

OJK (photo: dock. Antara)

JAKARTA - The Financial Services Authority (OJK) plans to increase the maximum limit of productive funding higher than the previous maximum limit of IDR 2 billion, to further strengthen support for the productive business sector, through the Information Technology-Based Joint Funding Service (LPBBTI). The LPBTI is currently in the process of drafting a Financial Services Authority Regulation on Information Technology-Based Joint Funding Services (RPOJK LPBBTI) or fintech peer to peer lending (fintech P2P).

LPBBTI which can channel the maximum funding limit must meet certain criteria, including having a maximum TWP90 ratio of 5 percent. TWP90 is a measure of the default rate or negligence in the settlement of obligations stated in the funding agreement above 90 days from the maturity date.

Funding for the productive sector is in line with the Roadmap for the Development and Strengthening of LPBBTI 2023-2028 which aims to increase positive contributions to micro, small and medium enterprises (MSMEs) and national economic growth. OJK appreciates the input and views submitted by various stakeholders, and is currently making improvements to the LPBBTI industrial regulation as one of the OJK follow-ups in accordance with the mandate of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UUU P2SK). Some improvements to these provisions include institutional strengthening, risk management, management and consumer protection, as well as strengthening support for the productive sector.