Fintech
OJK Plans to Increase P2P Financing Limit for Business Lending
Free Newsletter
Get the latest Fintech Singapore news once a month in your inbox
Indonesia Financial Services Authority (OJK) plans to increase the cap for peer-to-peer (P2P) financing beyond the current limit of IDR 2 billion, specifically for productive financing used for commercial and economic activities, rather than consumer financing for personal use.
This initiative is part of a new regulation for joint financing services based on information technologies (RPOJK LPBBTI), currently under development and taking into account feedback from various stakeholders.
OJK recognizes the valuable contributions of these stakeholders and is finalizing the LPBBTI sector regulation as part of its mandate under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (UU P2SK).
Key improvements to the regulation include stronger institutional frameworks, risk management, governance and consumer protection, with a particular focus on strengthening support for the productive sector.
This initiative is in line with the LPBBTI Roadmap for Development and Strengthening 2023-2028, which aims to increase contributions to SMEs and national economic growth.
Eligible LPBBTI providers must meet specific criteria, including maintaining a maximum TWP90 ratio of 5%.
The TWP90 ratio measures failures or delays in fulfilling obligations beyond 90 days from the due date.
Featured image credit: edited by Free image