Indonesian Fintech Lending Industry Maintains Growth Optimism for 2026

Positive Growth Trajectory Continues

The Indonesian Fintech Lending Association (AFPI) remains optimistic about the industry's prospects for 2026, based on strong growth indicators through October 2025. The industry recorded Rp92.92 trillion in outstanding financing, representing a 23.86% year-on-year increase. The TWP90 ratio, an important indicator of asset quality, remained stable at 2.76%.

Key Growth Drivers and Challenges

AFPI Chairman Entjik S. Djafar highlighted that the growth is driven by productive financing and UMKM lending, supported by strengthening regulations and improved distribution quality. However, the industry faces significant challenges including reducing default rates and combating illegal lending practices. The association is working closely with regulators to address these issues while maintaining industry growth.

Strategic Initiatives for 2026

To strengthen industry performance in 2026, AFPI's national working meeting on December 9, 2025, identified three key pillars: 1) Collaboration with regulators and law enforcement, 2) Compliance discipline among members, and 3) Consistent implementation of high standards in credit scoring, risk mitigation, and financial literacy. These measures aim to maintain a balance between growth and stability while enhancing public trust in digital financing services.

Industry Outlook

With these strategic initiatives and current growth momentum, AFPI is confident that the fintech lending industry can achieve sustainable positive growth in 2026. The focus on quality lending practices and regulatory compliance is expected to enhance both industry performance and market confidence.