Indonesia's Online Lending Debt Reaches Record Rp90.99 Trillion

Surging Debt and Rising Defaults

The Financial Services Authority (OJK) has reported that Indonesia's outstanding peer-to-peer (P2P) lending debt has reached Rp90.99 trillion as of September 2025. This figure represents a significant 22.16% year-on-year increase and a 3.86% month-on-month rise from Rp87.61 trillion in August 2025. The rapid growth in online lending has been accompanied by an increase in default rates, with non-performing loans exceeding 90 days reaching 2.82% in September 2025, up from 2.60% in the previous month.

Economic Implications

Bhima Yudhistira, Executive Director of CELIOS, noted that the rising online debt is not a positive signal for the national economy. The increasing debt levels suggest that many individuals are struggling to meet their basic needs, indicating stagnant income growth and financial strain on households. The trend raises concerns about the long-term sustainability of Indonesia's consumer lending market and its potential impact on financial stability.

Regulatory and Market Response

The OJK will likely face pressure to tighten regulations on the P2P lending sector to address growing default concerns. While the sector has provided access to credit for underserved populations, the rapid growth and rising defaults highlight the need for enhanced regulatory oversight and borrower protection measures. The situation underscores the importance of balancing financial inclusion with prudent lending practices to maintain stability in the financial system.