Bunga Pinjol Cartel Drags 44 Fintech, Association Opens Tech Voices – 52 minutes ago

Jakarta, CNBC Indonesia – The Business Competition Supervisory Commission named 44 fintech companies as reported in the “pinjol flower cartel” case. Associations that host the platform peer-to-peer lending open your voice.

“We are happy to have met with KPPU and gained a lot of insight regarding business competition. For this reason, we respect the ongoing process at KPPU and will continue to provide the necessary support regarding alleged potential violations of fintech lending business competition, especially regarding determining the maximum amount of loan interest ,” said the General Chair of the Indonesian Joint Funding Fintech Association (AFPI), Entjik S. Djafar in a press release, quoted Monday (30/10/2023).

AFPI respects the investigation process by the Business Competition Supervisory Commission (KPPU) regarding the determination of the maximum loan interest amount. However, the association emphasized that determining the maximum loan interest rate is not the same as setting the same price which is prohibited by Law Number 5 of 1999 concerning the Prohibition of Monopoly Practices and Unfair Business Competition.

“Regarding the alleged potential violation of the maximum loan interest rate, we consulted the OJK as the financial industry regulator as well as the KPPU as the institution that monitors fair business competition,” said Entjik.

Based on 2023 research, the projected financing needs for MSMEs in 2026 are estimated to reach IDR 4,300 trillion, while the financial industry can only provide IDR 1,900 trillion. This means that there is still a credit gap of IDR 2,400 trillion.

P2P Lending companies, as of August 2023, have distributed loans of IDR 677.51 trillion. Loans disbursed by AFPI members also continue to increase, growing 112 percent in 2021 and growing 45 percent in 2022.

Member of the Ombudsman of the Republic of Indonesia for the 2016-2021 period, Ahmad Alamsyah Saragih, advised AFPI to discuss with the OJK to develop a recommendation formula taking into account the business performance of the loan company.

“AFPI needs to pay close attention to the results of the KPPU’s investigation which will enable it to become a standard behavior change scheme. If the provisions on the maximum loan interest limit are revoked, the OJK will regulate it. It would be better if the latest regulations were set by considering future industry conditions,” said Alamsyah.

[Gambas:Video CNBC]