Indonesia's P2P Lending Industry Remains Optimistic Amid Market Consolidation

Industry Growth Continues Despite Platform Exits

The Indonesian Fintech Lending Association (AFPI) remains optimistic about the P2P lending industry's prospects despite several platforms exiting the market since December 2023. As of November 2025, the industry recorded Rp94.85 trillion in outstanding loans, representing a 25.45% year-on-year growth. This positive growth trajectory indicates the industry's resilience amidst consolidation.

Reasons Behind Platform Exits

AFPI Chairman Entjik S. Djafar explained that platform exits are a natural selection process, especially for a relatively new industry. Some companies returned their licenses voluntarily, while others had their licenses revoked by the Financial Services Authority (OJK). Reasons for exits varied, including a desire to focus on core business, having similar financial business lines, or issues with non-performing loans (NPL).

Path Forward for Remaining Players

To remain competitive, industry players are advised to focus on strengthening risk management through OJK's SLIK (Sistem Layanan Informasi Keuangan) and diversifying products to include productive financing options. Heru Sutadi, Executive Director of Indonesia ICT Institute, emphasized the importance of strict credit scoring, regular monitoring, and collaboration with insurance companies to maintain healthy loan portfolios.

Regulatory Compliance and Industry Cleanup

The recent exits are seen as part of an industry cleanup process. Heru Sutadi noted that many exiting platforms failed to meet the minimum equity requirement of Rp12.5 billion, highlighting the need for higher professionalism in the industry. The OJK's regulatory measures are expected to lead to a more sustainable and robust P2P lending ecosystem in Indonesia.