Executive Summary

Key insights and market outlook

Indonesia's fintech lending industry remains attractive to foreign investors due to its large market potential and significant credit gap of Rp1,650 trillion. The industry has seen 22.16% annual growth in outstanding loans, reaching Rp90.99 trillion by September 2025. 30% of funding currently comes from foreign investors, while the rest is dominated by national banks. Industry leaders emphasize the importance of prudent credit management to maintain healthy growth.

Full Analysis

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Deep Dive Analysis

Indonesian Fintech Lending Continues to Attract Foreign Investors

Huge Market Potential and Credit Gap Drive Interest

Indonesia's fintech lending industry remains highly attractive to foreign investors, driven by the country's large market size - being the world's fourth most populous nation ¹

². The significant credit gap of Rp1,650 trillion represents a substantial opportunity for growth in the peer-to-peer lending sector ¹.

Industry Growth and Funding Structure

The fintech lending industry has demonstrated robust growth, with outstanding loans reaching Rp90.99 trillion by September 2025, representing a 22.16% year-on-year increase ¹

. Currently, 30% of the industry's funding comes from foreign investors, while the remaining 70% is primarily sourced from national banks ¹.

Risk Management and Credit Practices

Industry experts emphasize the importance of prudent credit management to maintain the sector's health. Peter from Credit Bureau Indonesia highlighted that lenders are becoming increasingly disciplined in credit checks, even for small loans ¹

. The aggregate credit risk (TWP90) stood at 2.82% as of September 2025, up from 2.60% in the previous month ¹.