Online Loan Debt Reached IDR74 48 Trillion As Of September 2024

Monday, 04 Nov 2024

By deriz@insightinnews.com The Financial Services Authority (OJK) reported that the total loans in the peer-to-peer (P2P) lending industry, also known as online loans, reached Rp74.48 trillion as of September 2024. Agusman, the Executive Head of the Supervisory Board for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services (PVML) at OJK, stated that the online loan amount increased by 33.73 percent year-on-year (yoy) in September 2024. However, this growth is lower than the previous month, which saw a rise of 35.62 percent yoy. "For the P2P lending industry, the financing value grew by 33.73 percent year-on-year to Rp74.48 trillion in September. Last August, it grew by 35.62 percent yoy," he mentioned during a press conference on the results of the OJK Board of Commissioners Meeting in Jakarta on Friday, November 1, 2024. Meanwhile, the non-performing loan rate for online loans (TWP90) remained stable in September compared to the previous month, holding steady at 2.38 percent as of September 2024. In addition to the surge in online loans, the receivables of multifinance companies also increased by 9.35 percent yoy to Rp501.78 trillion as of September 2024. Although this is an increase, the growth rate has slowed down from August, which recorded a rise of 10.18 percent yoy. The gross non-performing financing (NPF) ratio in September was 2.62 percent, down from 2.66 percent in August. The net NPF was recorded at 0.81 percent in September, the same as in August. "The gearing ratio decreased to 2.33 times, well below the maximum limit of 10 times," he added. By the end of September 2024, venture capital financing has decreased by 8.10 percent year-on-year, reaching Rp16.25 trillion. In August, the contraction was 9.03 percent, with a value of Rp16.19 trillion. Since January 1 to October 28, 2024, OJK has blocked 2,742 illegal financial entities. Friderica Widyasari Dewi, the Executive Head of the Financial Services Authority's Behavioral Supervision, Education, and Consumer Protection, stated that this includes 242 illegal investment offers and 2,500 illegal online loans. "We have also identified and shut down 2,500 illegal online loan entities and 242 illegal investment offers," she said. From 2017 to October 28, 2024, OJK has blocked a total of 10,891 illegal financial entities, which includes 1,460 illegal investments, 9,180 illegal online loans, and 251 illegal pawnbrokers.

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