Indonesia's P2P Lending Market Shows Strong Growth, OJK Advises Caution

Significant Expansion in Loan Disbursement

The Indonesian peer-to-peer (P2P) lending industry is on track for continued growth in 2026, following a significant increase in loan disbursement throughout 2025. According to data from the Financial Services Authority (OJK), the outstanding financing through fintech P2P lending platforms reached Rp 92.92 trillion by October 2025. This represents a substantial 23.86% year-on-year (YoY) growth, indicating robust demand for digital lending services in the country.

Profitability and Industry Performance

The P2P lending industry has also demonstrated strong profitability, with total profits reaching Rp 2.09 trillion by October 2025. This positive financial performance underscores the sector's resilience and its growing importance in Indonesia's financial ecosystem. The consistent growth in both loan disbursement and profitability suggests that P2P lending is becoming an increasingly significant channel for financial inclusion in Indonesia.

Regulatory Guidance and Consumer Protection

While the growth of the P2P lending market presents opportunities for expanded financial access, it also raises concerns about potential risks associated with unregulated or illegal lending platforms. In response, the OJK is urging consumers to exercise caution and only use P2P lending services from platforms that are officially registered and licensed by the regulatory authority. This advisory aims to protect consumers from potential issues such as exorbitant interest rates, data privacy breaches, and aggressive collection practices that are often associated with illegal lending operations.

Market Outlook for 2026

The positive growth trajectory of the P2P lending industry is expected to continue into 2026, driven by increasing demand for digital financial services and the ongoing expansion of fintech infrastructure in Indonesia. As the industry grows, the OJK is likely to maintain its focus on regulatory oversight to ensure that the benefits of increased financial inclusion are balanced with robust consumer protection measures.