Disappointed with the KPPU Decision, the Majority of AFPI Members are Ready to Appeal

AFPI General Chair Entjik S. Djafar (photo: ANTARA)

JAKARTA - The Indonesian Association of Joint Funding Fintech (AFPI) stated that it was ready to appeal to the Competition Supervisory Commission (KPPU) which decided that 97 fintech P2P lending was proven to have committed a loan cartel.

Previously, the KKPU had decided that 97 loan service business actors who were proven to have engaged in loan interest cartel practices were given various fines totaling Rp755 billion.

The Chairman of AFPI, Entjik S. Djafar, admitted that he was disappointed with the verdict. According to him, the decision did not reflect the facts that were open throughout the examination session.

Entjik said that the KPPU forced itself to break all online loan platforms because there was no agreement on the maximum limit of economic benefits (interest rates) that had ever been proven during the examination session.

"We are certainly disappointed with this KPPU ruling because the maximum limit of economic benefits at that time was a directive from the Financial Services Authority (OJK) to protect consumers from predatory lending and illegal lending practices that set very high interest rates at that time. Therefore, the majority of the association's members will appeal the KPPU's decision," he said in an official statement received on Friday, March 27.

Apart from the ruling, AFPI emphasized that it still respects the applicable legal process and is committed to maintaining integrity and trust in the industry ecosystem.

AFPI believes that as a country of law, Indonesia has a mechanism that provides room for a fair settlement. For this reason, AFPI urges members to take steps in accordance with the applicable legal process.

"We are still coordinating with all related platforms for the legal steps to be taken. In essence, the appeal step is the right of each member, but we can convey that all members do not accept the decision," he added.

Apart from the ruling, Entjik also emphasized that the operational activities of the pindar platform under the auspices of AFPI continued to run normally.

The ruling does not change the obligation to pay according to the agreement and all obligations must still be fulfilled as appropriate.