KPPU Investigates Alleged Rate Fixing in P2P Lending Sector

Investigation Background

The Indonesia Competition Commission (KPPU) is continuing its investigation into alleged anticompetitive practices within the peer-to-peer (P2P) lending industry. The investigation focuses on whether members of the Indonesia Fintech Lending Association (AFPI) have engaged in prohibited agreements regarding interest rate caps.

Expert Testimony

Nindyo Pramono, Professor of Business Law at Gadjah Mada University, provided crucial testimony during the hearing held on November 24, 2025. Pramono stated that compliance with association rules doesn't necessarily constitute an agreement among members, particularly when these rules are mandatory in nature. The expert's statement is significant as it addresses the KPPU's allegations that AFPI members had colluded to set maximum interest rates at 0.8% in 2018 and 0.4% in 2021.

Legal Implications

The KPPU has alleged that the AFPI's Code of Conduct effectively created an agreement among its members to limit interest rates, which could be considered an anticompetitive practice. However, Pramono's testimony suggests that mandatory association rules may not be considered as evidence of collusion. This legal nuance is crucial in determining the outcome of the investigation.

Industry Impact

The investigation's findings could have significant implications for the P2P lending industry in Indonesia. If the KPPU finds evidence of anticompetitive practices, it could lead to substantial penalties for AFPI members. Conversely, if the investigation concludes that no violation occurred, it could reinforce the industry's current practices.