Fintech
Fintech Society Backs OJK’s Plan to Increase P2P Lending Limit to Rs10 Billion
Jakarta. The Indonesia Fintech Society (Amvesindo) has expressed its support for financial authorities’ plan to increase the lending limit from peer-to-peer (P2P) lending platforms from the current Rs2 billion to Rs10 billion, saying the increase will broaden the market’s demographics.
The Financial Services Authority (OJK) has unveiled this plan to help the P2P lending sector expand its coverage and provide small and medium-sized enterprises (SMEs) with greater access to finance.
“The Rs 10 billion limit will cover a new demographic of borrowers,” Eddi Danusaputro, a representative of Amvesindo, said during a talk show on IDTV.
A higher lending cap also provides P2P lending platforms with more flexibility to expand their operations to areas outside of Java, Eddi noted.
About 70 percent of the lenders participating in the P2P lending system are based in Java, which limits the geographic reach of potential customers in other islands, he added.
“This lending platform is critical to our economy to ensure that all elements of society have access to sources of capital other than banks,” Eddi said.
According to Eddi, since its introduction in Indonesia several years ago, the P2P lending platform has channeled Rp850 trillion ($52.4 billion) in capital and consumer credit.
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