Fintech Lending Industry Faces Rising NPL Rates

OJK Reports High NPL Rates Among Fintech Lending Platforms

The Financial Services Authority (OJK) has revealed that 22 out of 96 licensed fintech lending platforms in Indonesia recorded Non-Performing Loan (NPL) rates above 5% as of September 2025. This represents 22.91% of the total licensed P2P lending operators in the country. The OJK has initiated strict monitoring of these platforms and is enforcing corrective actions to address the high NPL rates.

Regulatory Measures to Address Rising NPLs

To mitigate the increasing NPL rates, particularly among young borrowers, the OJK has introduced new regulatory measures. These include a minimum age requirement of 18 years and a minimum income of Rp3 million for borrowers. The regulator is also focusing on enhancing financial literacy among the younger demographic to prevent misuse of fintech lending services.

Industry Performance and Risk Indicators

Despite the rising NPL concerns, the fintech lending industry recorded a 22.16% year-on-year growth in outstanding loans as of September 2025, with the total loan disbursement reaching Rp90.99 trillion. However, the overall NPL rate for the industry inched up to 2.82% from 2.60% in August 2025. The NPL rate among borrowers under 19 years old saw a significant increase, rising from 2,521 accounts in June 2024 to 21,774 accounts in June 2025.

Implications for the Fintech Lending Sector

The OJK's stringent monitoring and regulatory measures signal a proactive approach to managing the risks associated with the rapidly growing fintech lending sector. While the industry continues to expand, the rise in NPL rates, particularly among younger borrowers, poses challenges that require careful oversight and consumer education.