AFPI Ensures That The Determination Of The P2P Lending Interest Rate Boundary Is In Accordance With OJK's Directives

Pinjol (Photo: Antara)

JAKARTA - Chairman of the Indonesian Joint Funding Fintech Association (AFPI) Entjik S. Djafar emphasized that there has never been an agreement between peer-to-peer (P2P) lending (Pindar) operators in determining the maximum limit for economic benefits (interest rates) in 2018.

The policy, according to him, is a direct implementation at the direction of the Financial Services Authority (OJK) as emphasized through the OJK Letter Number S-537/PL.122/2025 dated May 16, 2025.

Furthermore, Entjik explained that the OJK gave directions to set a maximum economic benefit limit of 0.8 percent per day with the aim of determining firmly between the Pindar platform and illegal online loans (pinjol).

"There is no intention or agreement between members to set the interest rate because commercially it is more profitable if there are no restrictions," he said.

According to him, the maximum limit setting of economic benefits actually makes members have to sacrifice opportunities to get even greater profits or in other words these rules are honestly detrimental to members.

Entjik also highlighted the challenges that the loan industry is still facing due to the rise of illegal loans.

Based on OJK data, from 2017 to March 13, 2025, the PASTI Task Force has stopped 10,7331 illegal lending and personal loans. This number is 112 times more than the legal Pindar platform which is currently recorded as many as 96.

"For this reason, AFPI is working with the Investment Alert Task Force (now the DEFINITE Task Force) in efforts to take action and public education," said Entjik.

Entjik also added that each Pindar platform sets a maximum limit for different economic benefits, adjusting to the risk profiles and character of their respective market targets, so that competition in the industry continues to run in a healthy and dynamic manner.

In addition, the peer-to-peer lending industry also aims to serve underserved and unbanked communities, which are not yet affordable by conventional financial services such as banks or multifinance, so that they have different market characteristics from market targets from conventional financial institutions.

In the trial numbered Register 05/KPPU-I/2025, Entjik also said that the AFPI was then appointed by the OJK to regulate the maximum limit of economic benefits.

At that time, OJK did not have a legal standing to regulate, while regulations that provided legal standing were only issued in 2023, namely Law no. 4 of 2023 concerning the Development and Strengthening of the Financial Sector or what we know of the P2SK Law. Only after the issuance of the P2SK Law in 2023, the OJK has the authority to regulate, so that currently the maximum limit of economic benefits is directly regulated by the OJK," he concluded.