TWP90 23 Fintech P2P Lending Above 5 Percent, OJK: If It's Worse, There Will Be Further Supervision

Illustration of OJK (Photo: Doc. Antara)

JAKARTA - A total of 23 fintech peer to peer lending has a Wan Achievement Level (TWP90) above 5 percent. TWP90 is a measure of the default rate or negligence in the settlement of fintech customer obligations above 90 days from the maturity date, which is a measure of the quality of fintech funding.

Chief Executive of Insurance Supervisory, Insurance Corporation and Financial Services Authority (OJK) Pension Fund Ogi Prastomiyono said, on an industrial aggregate, the number of TWP90 in the end of March 2023 was 2.81 percent.

"The number of peer to peer lending companies that TWP90 is above 5 percent fluctuates compared to previous months," he said in an official statement, Saturday, May 6.

For organizers who have TWP90 above 5 percent, OJK conducts guidance and asks them to apply for an action plan to repair bad funding.

"OJK monitors the implementation of the action plan strictly. If the conditions are worse, the OJK will carry out further surveillance measures in accordance with applicable regulations," he added, as reported by Antara.

OJK also continues to monitor the quality of funding every month.

Several factors related to changes in TWP90 include the platform's ability to facilitate fund disbursement, quality credit scoring for potential loan recipients, quality of ongoing loan collection processes, and cooperation with ecosystems such as providing credit insurance facilities and others.

OJK requires peer to peer lending providers to be able to publish data on the quality of the loan in the context of consumer transparency and protection.

"Consumers and prospective consumers can directly monitor the loan quality data of a peer to peer lending platform," he said.

The reporting for the April 2023 period has not yet entered the maturity of the reporting, so the impact after Eid cannot be known with certainty.

"However, based on historical data last year, the moment of Eid did not directly affect the significant increase in the number TWP90 and was still in the range of 2 to 3 percent," he said.