JAKARTA. The ratio of bad loans or Non-Performing Financing (NPF) in a number of fintech companies is expected to rise to 4% in 2020, after touching 3.51% in November 2019.
Tumbur Pardede, Head of the Institutional and Public Relations Division of the Indonesian Joint Funding Fintech Association (AFPBI), said the projected increase in the NPF was still quite reasonable, since many fintech companies entered the Micro, Small and Medium Enterprises (MSME) sector.
"NPF is high because more and more fintech companies are registered with OJK, and expand to various regions," Pardede was quoted as saying by Kontan on Sunday (5/1) yesterday.
In addition, Pardede acknowledges that the risk of NPF for fintech is indeed greater than for banks, due to the habits of the unbankable people, who were not accustomed to paying bills on time. (KR/AR)