OJK: P2P Lending Fintech Profit Reaches IDR 656.80 Billion As Of August 2024

Illustration. (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) said that peer-to-peer (P2P) lending fintech profit reached IDR 656.80 billion as of August 2024.

"The peer-to-peer lending industry has increased again and in the August 2024 data it has reached Rp656.80 billion. July (profit) has also increased and in August it continues to rise," said the Chief Executive Supervisory of the Financing Institution, Ventura Capital Company, Micro Financial Institution and Other Financial Services Institutions OJK Agusman during a press conference in Jakarta, quoted from Antara, Tuesday, October 1.

He assessed that P2P lending's fintech profit increased when compared to the July position which was recorded at IDR 383.68 billion. The increase in profit occurred due to an increase in income followed by the efficiency of the company's operating expenses.

"So that peer-to-peer lending organizers can make good preparation and mark the ecosystem and infrastructure they have, so that the peer to peer lending industry will be able to continue to grow in a healthy and sustainable manner," he said.

Overall, the OJK conveyed that the outstanding financing through fintech P2P lending reached Rp72.03 trillion as of August 2024. This amount reflects an increase of up to 35.62 percent on an annual basis (yoy) when compared to July which was 23.97 percent (yoy).

"In the peer to peer (P2P) lending fintech industry, outstanding financing in August 2024 grew 35.62 percent yoy, with a nominal value of IDR 72.03 trillion," said Agusman.

The growth in financing was followed by the level of bad credit risk or the Loan Assessment Rate (TWP90) was at the level of 2.38 percent, down from 2.53 percent in July 2024. Agusman assessed that this figure shows the risk of aggregated bad credit to be maintained.

Meanwhile, other growth occurred in the Buy Now Pay Later (BNPL) or Pay Later sector, which increased by 89.20 percent (yoy), reaching IDR 7.99 trillion as of August 2024.