NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Tuesday, January 8, 2019

By Erwida Maulia

Indonesia’s flourishing peer-to-peer lending industry is under scrutiny as complaints surge over a market that meets a need for fast credit but attracts unscrupulous players.

The Financial Services Authority, or OJK, recently said it has enlisted the Communications Ministry to block more than 400 websites and smartphone applications offering illegal P2P lending services.

Officials said they also have issued warnings to 78 registered P2P lenders, threatening to revoke their licenses if they are found in violation.

“We’ve also asked banks to cut illegal fintech companies’ cash flow,” Agus Fajri, OJK director for customer services, told a news conference on Dec. 12.

Photo courtesy of uditha wickramanayaka.