Whoops! Dozens Of Loans Have Not Fulfilled IDR 2.5 Billion Capital, OJK Waits Until October

The Financial Services Authority (OJK) confirmed that until now there are still fintech lending companies that have not met the basic capital rules of IDR 2.5 billion.

Chief Executive of Insurance Supervisory, Guarantee and Pension Fund Ogi Prastomiyono said the report was obtained based on monitoring the realization of corporate actions of the company according to the action plan for fulfilling equity.

"We are enforcing companies that have not met the minimum equity provisions up to the approved timeline. Some of them are also still in the process of agreeing to change capital in order to fulfill the minimum equity of IDR 2.5 billion," he said in a written statement, Friday, August 4.

Ogi explained that the authorities are still providing space for the company, which is often referred to as an online loan (pinjol) to fulfill obligations according to applicable regulations.

"For peer-to-peer lending fintech companies that have submitted a repair plan but have not submitted an additional capital application, they are given time to implement this until October 4, 2023," he said.

Meanwhile, for entities that cannot follow the order, the OJK will take further steps. The information gathered by the editor stated that at least 33 fintech lenders were not sufficient for IDR 2.5 billion.

"Companies that cannot meet the minimum equity provisions up to the deadline set at POJK 10/2022 will be supervised according to applicable regulations," he said.

As for the moratorium, the authorities are still looking at and monitoring the development of the industry in the next few months. In addition, the OJK is in the process of preparing adequate infrastructure, before officially revoking the moratorium on the P2P lending fintech business license.

"Infrastructure readiness includes, among other things, the readiness of the licensing and supervision system as well as the readiness of regulations regarding the implementation of P2P lending fintech business activities," concluded Ogi.