16 P2P Lending Providers Have Non-Performing Loans Above 5%

JAKARTA, Jakartaweekly.com–The Indonesia’s Financial Services Authority (OJK) said that 16 peer-to-peer (P2P) lending providers, also known as online lending platforms, currently have high levels of non-performing loans. 

Agusman, Chief Executive of OJK’s Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions (PVML), explained that in July 2026, 16 P2P lending providers recorded a TWP90 ratio above 5%. The figure was unchanged from June 2026. 

“OJK continues to closely monitor the measures taken by these providers to improve financing quality,” Agusman said, as quoted by Jakarta Weekly on Thursday, September 17, 2026. 

Agusman also explained that non-performing financing in the P2P lending industry in July 2026 was dominated by borrowers aged 19-34, who accounted for 48.22% of total non-performing outstanding loans. By gender, male borrowers accounted for the larger share of non-performing outstanding loans at 54.22%. 

“OJK continues to closely monitor developments in P2P lending financing quality based on borrower characteristics,” Agusman added. 

OJK Cancels Limit on Borrowing from Three Fintech Lenders

TWP90 is an indicator used by OJK to measure the percentage of outstanding loans that have been in default for more than 90 days. OJK has set a maximum TWP90 threshold of 5%. 

P2P lending providers are required to meet at least four key requirements. First, they must improve and maintain the quality of their funding analysis. Second, they must comply with prudential principles. Third, they must implement risk management. Fourth, they must maintain a TWP90 ratio of no more than 5%. 

Furthermore, OJK has scrapped the limit on borrowing from three fintech lending providers, taking into account the continued high demand for funding among the public, including MSMEs, short-term working capital needs, and the informal sector.

“Considering the need to support access to inclusive alternative financing that can reach underserved communities more effectively, the funding limit for three P2P lending providers will no longer apply, provided that the providers fulfill their obligations,” Agusman explained.

P2P Lending Industry Grows 29.06% Outside Java

OJK also reported that P2P lending financing outside Java grew 29.06% year-on-year (yoy) in July 2026 to Rp32.81 trillion. Financing remained concentrated in Java, which accounted for 68.94% of total outstanding loans.

The highest year-on-year growth was recorded in the provinces of Highland Papua (85.77%), Central Papua (77.76%), and South Papua (69.14%).

Challenges that require attention include differences in regional characteristics and economic conditions, as well as the quality of data on prospective borrowers. OJK continues to promote more evenly distributed access to financing outside Java in line with the P2P Lending Roadmap 2023–2028.