Bad Credit Increases, Pinjol Loans Reach IDR 58 T

Jakarta –

The Financial Services Authority (OJK) recorded the outstanding performance of fintech peer to peer (P2P) lending, aka online loans (tall) reached IDR 58.05 trillion as of October 2023. This amount grew 17.66% compared to the same period last year (year on year/yoy).

“In fintech peer to peer lending, outstanding financing in October 2023 continues to increase to 17.66% year on year with a nominal value of IDR 58.05 trillion,” said the Chief Executive of the Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions and Institutions. OJK Agusman Financial Services in a press conference, Monday (4/12/2023).

This was accompanied by an increase in non-performing loans or the 90-day default rate (TWP90) reaching 2.89% in October 2023, slightly higher than September 2023 which was at the level of 2.82%.

Even though it has increased, the condition is said to still be maintained below the alert level or threshold used by the OJK as a reference for monitoring TWP90, namely 5%. This figure is a measure of the level of negligence in completing obligations in the loan agreement beyond 90 days from the due date.

The high growth of pinjol financing shows the ongoing intermediation function and the high need of the community for easier and faster access to finance than through banks or finance companies. On the other hand, OJK continues to provide education to the public to use loans wisely.

In the midst of the growth in financing, OJK noted that there were 23 loans that still lacked capital, namely below the minimum equity requirement of IDR 2.5 billion. Even though these conditions must apply from July 4 2023.

“OJK encourages GRC (good governance, risk management, and compliance) so that companies can grow healthily and safely,” said Agusman.

(aid/that)