Indonesia fintech lending grows as alternative credit scoring expands

The fintech lending industry in Indonesia is experiencing significant growth, with outstanding financing reaching approximately Rp 105.14 trillion as of June 2026, representing a year-on-year increase of 25.88%. This growth highlights the sector's role in addressing a massive national credit gap, estimated at roughly Rp 1,650 trillion.

To facilitate access for lower-income populations, legal fintech companies are increasingly utilizing alternative data for credit scoring. Kuseryansyah of the Indonesian Joint Funding Fintech Association (AFPI) noted that instead of traditional credit scores, companies may use telecommunications data, such as the longevity of a mobile phone number, to assess creditworthiness.

As the market expands, industry players are emphasizing the need for transparency to protect consumers. AdaKami has launched transparency campaigns to ensure users understand costs and repayment terms. A study by LPEM FEB UI indicated that clear information presentation leads to higher consumer understanding, with over 95% of users in one study comprehending their total obligations before approval.