Indonesia's P2P Lending Debt Hits Record Rp90.99 Trillion, Raises Red Flags

Surging Debt and Rising Default Rates

The Financial Services Authority (OJK) reported that Indonesia's outstanding P2P lending debt reached Rp90.99 trillion as of September 2025, representing a significant 22.16% year-on-year increase. This growth is accompanied by a rising non-performing loan rate above 90 days (TWP90), which climbed to 2.82% from 2.60% in the previous month. The increasing debt levels and default rates have raised concerns among financial experts about the potential negative impact on the national economy.

Economic Implications of Rising Consumer Debt

Bhima Yudhistira, Executive Director of CELIOS, emphasized that the growing P2P lending debt is not a positive signal for the national economy. The increasing reliance on such debt indicates that many individuals struggle to meet their daily needs through their regular income. Most P2P lending is used for consumptive purposes, leading to a cycle where borrowers face mounting interest and administrative penalties."The growing need for quick funds through P2P lending is not a positive economic indicator," Bhima stated. "People are attracted by the ease of access, but they often overlook the significant consequences, such as high interest and administrative fines. This can create a debt cycle where borrowers take new loans to pay off existing ones."

Regulatory and Market Concerns

The rapid growth of P2P lending in Indonesia highlights the need for effective regulatory oversight to prevent potential financial instability. As the industry continues to expand, regulators face the challenge of balancing consumer access to credit with the need to protect borrowers from predatory lending practices. The OJK will need to closely monitor the situation and potentially implement additional measures to ensure that the P2P lending sector contributes positively to the economy without posing significant systemic risks.