Indonesia's OJK tightens oversight of fintech lenders and urges risk mitigation for multifinance firms

The Financial Services Authority (OJK) has placed eight online‑lending (fintech) providers under special supervision because of capital deficiencies and elevated non‑performing loan ratios (TWP90). These firms must meet the minimum equity requirement of Rp 12.5 billion and improve credit quality before any further regulatory action, including possible licence withdrawal.

OJK also warned multifinance companies to strengthen risk mitigation after Bank Indonesia raised the BI rate by 50 basis points to 5.25% in May 2026. The authority advised tighter borrower credit assessments, intensive portfolio monitoring and diversification of funding sources to curb a potential rise in loan defaults and higher funding costs.

Meanwhile, OJK reported that the fintech peer‑to‑peer lending sector recorded a 71.43% profit increase to Rp 960 billion in April 2026, driven by a 26.11% year‑on‑year growth in outstanding financing to Rp 102.07 trillion. The sector’s aggregate non‑performing loan ratio (TWP90) stood at 4.62%, up from 2.93% a year earlier but showing recent improvement.