Indonesia's Fintech Lending Sector: Growth Amid Rising Challenges

Significant Expansion in 2025

Indonesia's fintech lending industry experienced substantial growth in 2025, with outstanding loans reaching Rp92.92 trillion by October 2025, representing a 23.86% year-on-year increase ²

. This growth was accompanied by a rise in net profit to Rp2.09 trillion during the same period ²

Source 2

https://keuangan.kontan.co.id/news/kilas-balik-2025-gagal-bayar-di-industri-fintech-mulai-dari-akseleran-hingga-dsi

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Rising Non-Performing Loans

Despite the positive growth figures, the sector faces significant challenges related to rising non-performing loans (NPLs). As of October 2025, there were 22 fintech lending platforms with NPLs above 5%, primarily in the productive financing segment which is vulnerable to economic fluctuations ¹

. The aggregate NPL ratio stood at 2.76% as of October 2025, down from the previous month but higher than the same period in 2024 ⁵

Source 5

https://finansial.bisnis.com/read/20251229/90/1940031/kaleidoskop-2025-semarak-aksi-perbankan-dari-ipo-hingga-kehadiran-bank-syariah-baru

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Regulatory Response

In response to these challenges, the Financial Services Authority (OJK) has announced plans to introduce stricter regulations. Key measures include:

1. Implementing a maximum debt-to-income ratio for borrowers by 2026 ¹
   Source 1

   https://finance.detik.com/moneter/d-8281984/risiko-kredit-macet-tinggi-aturan-pinjol-diperketat
2. Continuing the consolidation of Bank Perekonomian Rakyat (BPR) and BPR Syariah (BPRS) to strengthen their capital base and governance ⁴
   Source 4

   https://finansial.bisnis.com/read/20251229/11/1940200/catatan-akhir-tahun-bi-sibuk-pro-growth-mata-uang-rupiah-kian-tak-punya-daya
3. Enhancing risk assessment systems for fintech lending platforms ¹
   Source 1

   https://finance.detik.com/moneter/d-8281984/risiko-kredit-macet-tinggi-aturan-pinjol-diperketat

Industry Implications

The tightening regulations and rising NPLs have led to several fintech lending companies facing operational challenges. Notable cases include PT Akseleran Keuangan Inklusif Indonesia (Akseleran), PT Crowde Membangun Bangsa (Crowde), and PT Dana Syariah Indonesia (DSI) ²

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Broader Financial Sector Context

The challenges in the fintech lending sector come amid a broader financial landscape characterized by:

1. Moderate credit growth in the banking sector, with November 2025 credit growth at 7.74% year-on-year ³
   Source 3

   https://keuangan.kontan.co.id/news/kredit-industri-tumbuh-terbatas-bank-kecil-jaga-npl
2. Monetary policy easing by Bank Indonesia, with the BI rate cut by 125 basis points to 4.75% in 2025 ⁴
   Source 4

   https://finansial.bisnis.com/read/20251229/11/1940200/catatan-akhir-tahun-bi-sibuk-pro-growth-mata-uang-rupiah-kian-tak-punya-daya
3. Significant rupiah depreciation, with the currency being one of the worst performers in Asia in 2025 ⁴
   Source 4

   https://finansial.bisnis.com/read/20251229/11/1940200/catatan-akhir-tahun-bi-sibuk-pro-growth-mata-uang-rupiah-kian-tak-punya-daya