Indonesia's online lending leads in the Southeast Asian region, with total outstanding loans disbursed by online lending platforms reaching IDR 80.07 trillion, according to the Financial Services Authority (OJK).
This reflects the growing demand from individuals and small and medium-sized enterprises on digital loan platforms.
According to Nucky P. Djatmiko, president director at Fintopia Indonesia, one of the more intriguing developments in the first quarter of 2025 is the significant contribution of banks to online lending liquidity.
Roughly 60% of P2P loan disbursement came from banking institutions as of December 2024, up from 59% in November, reflecting an increasing level of trust and cooperation between traditional financial institutions and fintech platforms.
However, Djatmiko points out that the online lending industry in Indonesia faces several headwinds, as 11 out of 97 registered platforms had not met the minimum equity requirement of IDR 7.5 billion, as stipulated by OJK, raising questions about the long-term sustainability of smaller players in the sector.
Fintopia Indonesia's president director says challenges remain, such as ensuring borrower protection, mitigating over-indebtedness, and improving financial literacy. According to him, platforms that cannot meet governance and transparency standards may face increasing pressure or risk consolidation.
