Executive Summary

Key insights and market outlook

The Financial Services Authority (OJK) reported that 24 fintech lending companies had Non-Performing Loan (NPL) rates above 5% as of November 2025, dominated by the productive segment ¹

². OJK is taking supervisory measures, including requiring action plans and imposing administrative sanctions for non-compliance. The outstanding loans of fintech lending reached Rp94.85 trillion, with a TWP90 of 4.33%.

Full Analysis

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Deep Dive Analysis

OJK Reports Rising NPL Concerns in Fintech Lending Sector

High NPL Rates Among Fintech Lending Platforms

The Financial Services Authority (OJK) has identified 24 fintech lending companies with Non-Performing Loan (NPL) rates exceeding 5% as of November 2025 ¹

². This number has increased from 22 companies in the previous month ². The OJK's Head of Supervision for Financing Institutions, Agusman, stated that these high NPL rates are predominantly found in the productive segment, which is directly affected by economic dynamics.

Regulatory Response and Supervisory Measures

In response to these developments, OJK is implementing several supervisory measures. The regulator is requiring these fintech lending companies to submit action plans to address their high NPL rates, which will be closely monitored ¹

. Agusman emphasized that any violations of regulations could result in administrative sanctions, such as temporary suspension of funding or restrictions on accepting new lenders. The OJK is also encouraging these companies to strengthen their risk management and collection strategies to maintain the quality of their loan portfolios.

Capital Requirements and Industry Consolidation

The OJK has also highlighted that as of November 2025, nine fintech lending companies were still not compliant with the minimum equity requirement of Rp12.5 billion ¹

. These companies are being urged to take steps to meet this requirement, such as through capital injections from shareholders, seeking strategic investors, or considering mergers. Agusman noted that consolidation through mergers could be a viable option to strengthen business structures, ensure industry sustainability, and enhance consumer protection.

Industry Overview

The fintech lending sector continues to grow, with outstanding loans reaching Rp94.85 trillion in November 2025, representing a 25.45% year-on-year increase ¹

. However, the TWP90 (a measure of loan delinquency) has risen to 4.33%, indicating potential risks in the sector. The OJK's proactive measures aim to mitigate these risks and ensure the stability of the fintech lending industry.

References