OJK Changes Pinjol's Daily Interest Limit, Applicable Starting Today

Electronic system service socialization activity records digital financial innovation in the OJK room 'Innovation Center for Digital Financial Technology' (Infinity), Jakarta. (ANTARA PHOTO/Aditya Pradana Putra)

JAKARTA - The Financial Services Authority (OJK) has set a maximum limit for new economic benefits or daily interest for information Technology-Based Joint Funding (LPBBTI) or online loans (pinjol). This new daily interest rate is effective from January 1, 2025.

Plt. Head of the Department of Literacy, Financial and Communication Inclusion M. Ismail Riyadi explained that the maximum economic benefits limit can be evaluated regularly.

"According to the policy set by the Financial Services Authority, taking into account, including economic conditions and the development of the LPBBTI industry," he said in an official statement written Wednesday, January 1.

OJK regulates the maximum limit for economic benefits per day for consumptive loans with a tenor of under six months fixed at 0.3 percent.

Meanwhile, the maximum limit for economic benefits per day for consumptive loans with a tenor of more than six months remains at 0.2 percent. This daily interest decreased from 0.3 percent previously.

In addition, OJK also sets daily interest limits for productive loans. Loans for the micro and ultra micro sectors with the largest interest limits per day are 0.275 percent for tenors below six months and 0.1 percent for tenors over six months.

Meanwhile, the maximum limit for the benefits or daily interest of productive loans for small and medium enterprises is 0.1 percent. The interest applies to tenors above six months and below six months.

In addition to setting new daily interest limits, OJK also strengthens regulations related to the ecosystem. Which funders will be distinguished from being professional and non-professional.

The provider of professional funds consists of financial service institutions; companies with Indonesian or foreign legal entities; foreign individuals (non-residents); the central government, local governments, or foreign governments; as well as multilateral organizations.

In the OJK, domestic individuals (residents) can also provide professional funds as long as they have an income of more than IDR 500 million per year with a maximum placement of 20 percent of the total income per year in one LPBBTI organizer.

Meanwhile, non-professional funders are parties other than those mentioned above and domestic individuals (residents) who have the same income as or below Rp500 million per year, with a maximum placement of 10 percent of the total income per year in one year LPBBTI organizers.

Then, the portion of nominaDOOR standard funding by non-professional funders is compared to the total 20 percent maximum nominal standard funding which is valid no later than January 1, 2028.

OJK also stipulates the minimum age limit for providers of funds (lenders) and recipients of online loan (browliers). The minimum age limit for funders and recipients of funds is 18 years or have been married and the minimum income of LPBBTI Fund Recipients is IDR 3 million per month.

The obligation to fulfill the requirements or criteria for providing funds and recipients of funds is effective in applicable to the acquisition of new funders and recipients of funds, as well as extensions, no later than January 1, 2027.

"Regarding the strengthening of the arrangements regarding the LPBBTI above, LPBBTI organizers are asked to take steps to prepare and mitigate the risk so as not to have a negative impact on the performance of the LPBBTI organizers," said Ismail.