Indonesia's Fintech Lending Faces Challenges in Meeting Productive Sector Targets

Current Status of Productive Sector Financing

As of September 2025, the outstanding fintech peer-to-peer (P2P) lending to Indonesia's productive sector reached Rp 31.37 trillion, representing 34.48% of total P2P lending ¹

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https://keuangan.kontan.co.id/news/afpi-fintech-lending-berupaya-kejar-target-porsi-pembiayaan-produktif-40-50

. This figure falls short of the target outlined in the OJK's Roadmap for the Development and Strengthening of the Technology-Based Financial Services Industry (LPBBTI) for 2023-2028, which aims for 40-50% allocation to the productive sector between 2025 and 2026.

Expert Analysis and Concerns

Nailul Huda, Director of the Digital Economy at the Center of Economic and Law Studies (Celios), expressed skepticism about achieving the target. "I believe the target of 50% for productive sector financing will not be relevant given current conditions," he stated ¹

. Huda pointed out that many fintech lending companies focusing on the productive sector are experiencing rising default rates, making the target challenging to achieve.

Industry Response and Future Outlook

The fintech lending industry is working towards increasing the proportion of financing directed to productive sectors. However, the current trend indicates that reaching the OJK's target will be difficult without significant changes in lending practices or additional regulatory support. The industry faces the dual challenge of meeting regulatory targets while managing credit risk effectively.