There has been an increase in partnerships between peer-to-peers (P2P) and rural banks (BPRs), in line with OJK’s recent guidelines for cooperation between the two market actors to lend to MSMEs. Amartha, P2P, has recently partnered with BPR Hariarta Sedana
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
President Joko Widodo urges banks to allocate 30% of total lending to the MSME sector by 2024. Currently, average loan disbursements to MSMEs is 18% on an annual basis. The targeted 30% figure is aggregated at a national level, and
Digital credit platform Kredivo plans to go public at a valuation of US$ 2.5 billion, IDR 36.25 trillion, on the NASDAQ stock exchange next year via SPAC, a special purpose acquisition company. Kredivo distributes instant credit for consumer purchases on
Non-performing loans for fintech lenders have increased in the midst of the lockdowns, or “PPKM”. OJK data shows that non-performing loans (NPLs) increased from 1.32% in March to 1.54% in May. Therefore, fintech lenders are managing the credit risk in
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