JAKARTA. The Financial Services Authority (OJK) will regulate the interest rate used by peer-to-peer (P2P) lending fintechs so as not to overestimate and burden consumers.
Wimboh Santoso, Chairperson of OJK, said that high P2P interest can increase the risk of problem loans. "The interest rates should be reasonable. Don't let the interest rates be too high," Santoso said when met by idnfinancials.com on Tuesday (16/7) today.
Santoso added that the owners of P2P Lending business in Indonesia should follow the code of ethics that had been made with the Indonesian Joint Funding Fintech Association (AFPBI). If there is a fintech platform that applies interest rates above the code, OJK considers it as a violation. "(The Association) agreed that the interest rate is a fair interest rate," Santoso explained.
For information, OJK has shut down 1,087 illegal P2P Lending fintechs by this month. 404 fintechs were closed in 2018, while 683 fintechs were closed this year. (KR/AR)