Proof of Consistency of Fintech P2P Lending, 8 AFPI Members Obtained Business Licenses from OJK

JAKARTA, 2 June 2020 - Eight members of the Indonesian Joint Funding Fintech Association (AFPI) obtained a business license from the Financial Services Authority (OJK). This is proof of the consistency of the Fintech Peer to Peer (P2P) Lending industry to play an active role in the distribution of public loans, especially in the micro, small and medium enterprises (MSME) sector.

The eight AFPI members who received the latest business licenses from OJK are Capital Loans (PT. Financial Integration Technology), Taralite (PT. Indonusa Bara Sejahtera), Danar Rupiah (PT. Financial Services Sharing), Pinjamwinwin (PT. Progo Puncak Group), Julo (PT. PT Julo Financial Technology), Indodana (PT Artha Dana Teknologi), Awantunai (PT SimpleFi Technology Indonesia) and Natural (PT. Natural Fintek Sharia). Thus, a total of 33 Fintech Lending organizers have pocketed licenses from the OJK, out of a total of 161 members of the AFPI currently, the rest are registered with the OJK.

"Congratulations on the AFPI members who have obtained business licenses from the OJK. Hopefully with this business license obtained, it can strengthen the industry especially in the midst of the Covid-19 pandemic to show its consistency in playing an active role in lending to the community, especially the MSME sector, "AFPI Chairperson Adrian Gunadi said in an online press conference on Tuesday (2 / 6).

Adrian hopes that the acceptance of business licenses from the 8 AFPI members this time can inspire other members who are still in process. "To become a Fintech P2P Lending organizer, they must comply with regulations and regulations from the OJK and from the association in order to maintain the industry's credibility," Adrian said.

Adrian added that the granting of a business license from OJK indicates the credibility of the Fintech P2P Lending industry is getting higher. This can be seen from the increasing number of loan disbursements from all AFPI members to the public. Based on OJK data as of March 2020, the accumulation of Fintech P2P Lending loans rose 208.83% to Rp 102.53 trillion from the same period last year.

Business permit status is given to platforms registered at OJK that have fulfilled a number of requirements, such as information system security in the form of ISO 27001, which is an international standard in implementing an information security management system.

Industry Updates

The Chairperson of the Public Relations and Institution of AFPI, Tumbur Pardede explained that in the midst of the corona outbreak (Covid-19), AFPI also supported government policies to facilitate online loan restructuring in the Fintech P2P Lending industry. Based on the results of the AFPI restructuring survey for the period of 9-14 May 2020, there were 143 Fintech P2P Lending organizing platforms that provided answers. 88 platforms have received requests for restructuring from borrowers (borrowers) with the number of loans successfully facilitated and approved by lenders (lenders) as much as Rp 237 billion from 674,068 accounts / transactions.

The survey results also explained that as many as 90 platforms stated that the Paying Success Rate (TKB90) was stable, and 34 platforms experienced a decrease in TKB90, and 6 platforms claimed an increase in TKB90. TKB90 is the level of credit quality at Fintech P2P Lending, the higher and closer to level 100, the better. Based on OJK data as of March 2020, TKB90 Fintech P2P Lending was recorded at the level of 95.78%.

"It must be understood that Fintech P2P Lending is different from banks. Fintech P2P Lending is only an online lending and loan platform provider that brings together borrowers and lenders while banks act directly as lenders. So the Fintech P2P Lending platform organizer is not authorized to provide loan restructuring without the consent of the lender. The authority lies with the lender, but the organizer can facilitate requests for restructuring for MSME borrowers affected by Covid-19 to the lenders, "said Tumbur.

Financing increased

Chairperson of the AFPI Kuseryansyah added that during the Covid-19 outbreak, the decline generally occurred in most of the Fintech P2P Lending platform, but there were several sectors that experienced an increase in funding distribution, such as distribution to healthcare, especially in pharmaceutical MSMEs, drugs and equipment. health supporter. Likewise, sectors related to the distribution of food, agricultural products, food packaging, have a positive development.

The telecommunications sector and the online ecosystem that are services are also increasingly being used to support daily life and have the potential to continue to grow in line with the shift in people's consumption behavior.

"During the Covid-19 outbreak, there was good news from several platforms that continued to record growth in disbursement. With the power of product innovation and the adaptation of artificial intelligent (credit scoring) in risk management, they still recorded spectacular growth of more than 100%. Of course, this is possible because of support 

and from their lenders both institutional and individual, "Kuseryansyah said.

Kuseryansyah added that the Fintech P2P Lending industry will maintain performance during this pandemic and selectively channel financing. Thus it is expected to be able to maintain the active role of Fintech P2P Lending in reaching financing for people who have not been touched by financial institutions.

To find out the list of 161 Fintech P2P Lending providers registered and licensed in OJK, can open the following OJK link:

https://www.ojk.go.id/en/kanal/iknb/data-dan-statistik/ fintech / Documents / Developments Fintech Lending Period March 2020.pdf.

About AFPI

The Indonesian Joint Funding Fintech Association (AFPI) is an organization that houses the Fintech Peer to Peer (P2P) Lending or Fintech Online Funding business in Indonesia. AFPI was appointed by the Financial Services Authority (OJK) as the official association of information technology based lending and borrowing service providers in Indonesia, based on letter No. S-5 / D.05 / 2019.

Within Fintech P2P Lending itself consists of three types of online funding providers, namely Fintech P2P Productive Funding, Fintech P2P Multipurpose Funding and Fintech P2P Sharia Funding. AFPI is formed from the awareness that there must be protection for users of Fintech P2P Lending services, both borrowers and lenders.

AFPI has prepared an Online Funding Complaint Service Complaint Post that can be accessed by contacting the call center at 150 505 (toll free) during office hours, Monday - Friday at 08.00 - 17.00 WIB, also email: complaints@afpi.or.id. Website: www.afpi.or.id.