Data from the Financial Services Authority (OJK) shows that 70% of Micro, Small and Medium Enterprises (MSMEs) in Indonesia have yet to access financing from banks, due to weak financial assets and poor data transparency. Consequently, fintech companies plan to
OJK is drafting regulations that will limit institutional lenders from funding fintech peer-to-peer lenders. OJK’s new regulation involves setting distinct criteria for institutional lenders, specifically for overseas capital. For local capital, a bank is able to fund up to 25%
OJK noted that the distribution of credit by fintech lenders to the productive sector continues to increase, reaching US$ 8 billion (IDR 114.76 trillion) as of October, and 43.6% of the total disbursements are channeled to productive sectors. In 2020,
Institutional lenders (sometimes referred as ‘super lenders’) currently dominate in providing capital for fintech lending. Based on OJK data in September 2021, retail investors contributed 22.8% of outstanding loans with a value of US$ 430 million (IDR 6.14 trillion). However,
The Indonesian Joint Funding Fintech Association (AFPI), an OJK-appointed regulator, aims to cut daily interest rates significantly, up to 50%. Economists shared that this mandate has several negative implications, such as decline in fintech-investors, and decline in disbursement volumes. Alternative
Emtek Group, as shareholder of Grab Teknologi Indonesia (GTI) and Bukalapak, will acquire 93% of PT Bank Fama Internasional’s shares through its subsidiary, PT Elang Media Visitama (EMV) by the end of 2021. Established in 1993, Bank Fama, has assets
Bank Indonesia (BI) introduces BI-Fast, a new payment system to replace the current National Clearing System of Bank Indonesia (“SKNBI”). The key pain point of the SKNBI system is the lag time, up to one hour, needed for transaction settlements.
Several fintech providers, Akseleran, Modal Rakyat, Modalku etc., reported significant growth in their origination for Q3. OJK noted that the monthly distribution of fintech lending reached US$ 1.06 billion (IDR 14.95 trillion) in August 2021, a 205% increase compared to
The Ministry of Communication and Information (Kominfo) has recently banned four investment platforms and 151 illegal peer-to-peer lenders. From 2018 to August 2021, the Investment Alert Task Force closed 3,515 illegal online lenders. The chairman of the Financial Services
In line with OJK’s urge for fintech peer-to-peer lenders to increase lending outside Java, many alternative lenders have adopted varied strategies to expand their geographic reach. For example, fintech Danamas plans to increase its non-Java region lending from US$
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