Indonesia fintech lending faces rising credit risks among young borrowers

The fintech lending industry in Indonesia is facing challenges regarding credit quality, particularly among younger borrowers. According to the Financial Services Authority (OJK), individuals aged 19–34 accounted for 48.22% of the total outstanding problematic fintech lending as of July 2026. Additionally, male borrowers represent 54.22% of the problematic outstanding amount. The aggregate non-performing loan rate (TWP90) for the fintech lending industry was recorded at 4.32% during the same period.

Failure to repay online loans carries several legal and financial risks, including debt collection efforts, late fees, negative credit records, and potential data misuse. While borrowers are legally obligated to fulfill their debt agreements under the Indonesian Civil Code, OJK regulations mandate that collection processes must follow ethical standards and prohibit the use of threats, intimidation, or violence.

In response to these risks, fintech providers are being encouraged to enhance their credit scoring systems and implement stricter risk management. Some companies, such as PT Amartha Mikro Fintek, utilize customized credit scoring to target high-quality borrowers across diverse age profiles to maintain portfolio quality.