OJK Weighs Decision on Fintech Lending Moratorium Amid Industry Calls for Reform

JAKARTA, RAKYAT NEWS- The
Financial Services Authority of Indonesia (OJK) has provided the latest update regarding the moratorium on peer-to-peer (P2P) fintech lending.

Agusman, Head of the Financial Services Institutions, Venture Capital, Microfinance Institutions, and Other Financial Services Institutions (PVML) at OJK, stated that a decision to lift the moratorium on fintech lending licenses has not yet been made.

“Currently, OJK is evaluating the possibility of lifting the fintech lending moratorium,” he said in a written response on August 6.

Agusman added that OJK will consider data infrastructure and oversight readiness before reopening the moratorium to support the strengthening and development of the fintech lending industry, including efforts to support productive sectors.

In response, Nailul Huda, an observer and Director of the Digital Economy Center of Economic and Law Studies (Celios), expressed support for lifting the moratorium if it is focused on productive fintech lending. This would allow more fintech lending platforms to operate in productive sectors. However, Nailul believes that before lifting the moratorium, OJK should address existing internal industry issues, particularly those related to current P2P lending platforms.

“Thus, this could serve as a benchmark for new fintech lending platforms to be licensed. It would provide an opportunity for existing platforms to improve before new ones enter the industry,” Nailul said.

Agusman also emphasized that OJK’s careful consideration is aimed at ensuring that any future resumption of fintech lending activities is done in a controlled and regulated manner. The agency is focusing on strengthening the regulatory framework to mitigate risks and enhance the overall reliability of fintech lending platforms.

This approach aligns with OJK’s broader objective to create a more resilient and trustworthy financial ecosystem that can effectively support both consumers and businesses.

In light of the ongoing moratorium, the fintech sector has faced significant challenges, including limited opportunities for new market entrants and growth constraints for existing platforms.

Nailul Huda’s comments reflect a growing concern among industry stakeholders about the need for balanced regulation that both protects consumers and fosters innovation. By addressing the regulatory gaps and operational issues within the current fintech landscape, OJK aims to set a precedent for future industry standards and practices.

The outcome of OJK’s review process will be pivotal in shaping the future of fintech lending in Indonesia. As the agency continues to evaluate the situation, it is expected that detailed criteria and guidelines will be established to ensure that new and existing fintech lenders adhere to high standards of accountability and transparency. This strategic move is anticipated to build greater confidence among investors and consumers, ultimately contributing to the sustainable growth of Indonesia’s fintech sector. (Uki Ruknuddin)