Indonesia's Fintech Lending Sector: Balancing Growth and Risk

Rapid Expansion and Emerging Challenges

Indonesia's fintech lending industry has experienced significant growth, with outstanding loans reaching Rp 92.92 trillion by October 2025, representing a 23.86% year-on-year increase ¹

Rising Default Risks and Regulatory Concerns

The Financial Services Authority (OJK) has reported that while the aggregate non-performing loan ratio improved to 2.76% in October 2025 from previous months, it remains higher than the same period last year. This trend has raised concerns about potential default risks, particularly in platforms with concentration of credit exposure to specific sectors or borrowers ¹

Case Study: Akseleran's Default Crisis

A notable case in 2025 involved PT Akseleran Keuangan Inklusif Indonesia (Akseleran), where six major borrowers defaulted simultaneously, resulting in potential losses of Rp 178.27 billion as of March 3, 2025. This incident highlighted vulnerabilities in risk management practices and the need for stricter oversight ¹

Regulatory Guidance and Best Practices

In response to these challenges, OJK has emphasized the importance of proper risk assessment and borrower education. The regulator has encouraged lenders to adopt robust credit scoring mechanisms and maintain adequate capital reserves. For consumers, OJK recommends careful consideration of lending terms and choosing registered and compliant platforms ²

Market Outlook

Despite the challenges, the fintech lending sector is expected to continue growing, driven by increasing demand for alternative financing options. However, stakeholders must address the existing risks through improved governance, enhanced regulatory compliance, and better risk management practices.