OJK: 10 Out Of 97 P2P Lending Fintechs Have Not Met Minimum Equity Requirements

As of December 2024, the Financial Services Authority (OJK) reported that 10 out of 97 peer-to-peer (P2P) lending providers have not met the minimum equity requirement of IDR 7.5 billion. "Among these 10 providers, four are currently undergoing analysis for their capital increase applications," stated Agusman, the Executive Head of the Supervisory Board for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services at OJK, during a press conference in Jakarta on February 18, 2025, as reported by Antara.

Administrative Sanctions and Capital Fulfillment Plans Agusman noted that those providers failing to meet the minimum equity have faced administrative sanctions in accordance with existing regulations. OJK has also requested them to submit an action plan to ensure adequate capital.

The minimum equity requirement is outlined in OJK Regulation (POJK) Number 40 of 2024 regarding Technology-Based Joint Funding Services (LPBBTI). Article 169 mandates that providers must achieve a minimum equity of IDR 12.5 billion, which is to be fulfilled in stages: - The first stage requires a minimum equity of IDR 7.5 billion effective from the enactment of the LPBBTI regulation. - The second stage requires a minimum equity of IDR 12.5 billion starting July 4, 2025.

Risk Mitigation for Fraud and Fund Management POJK 40/2024 also addresses fraud risk mitigation by limiting the role of providers in managing funds belonging to lenders. This regulation ensures that transactions between lenders and borrowers occur directly. "With this provision, we hope to mitigate fraud risks and enable lenders to make informed funding decisions based on their risk appetite," Agusman added.

Tag: Financial Services Authority LPBBTI OJK