OJK Highlights Java's Dominance in Online Lending Market

Regional Distribution of Pindar Financing

The Financial Services Authority (OJK) has reported that Java Island continues to dominate the online lending (pindar) landscape, accounting for 69.95% of total pindar financing as of October 2025. The distribution is primarily concentrated in three key provinces: West Java (24.80%), DKI Jakarta (16.38%), and East Java (11.80%). This regional concentration highlights Java's significant role in Indonesia's digital lending market.

Growth Outside Java

Despite Java's dominance, OJK noted a significant 36.14% year-on-year growth in pindar financing outside Java, with the total value reaching Rp27.92 billion. This growth indicates the expanding reach of online lending services across Indonesia and suggests potential for further development in regions outside Java.

Industry Performance and Outlook

The total outstanding pindar financing reached Rp92.92 trillion in October 2025, representing a 23.86% year-on-year increase. The TWP90 ratio remained stable at 2.76%, indicating maintained asset quality. However, OJK noted that 22 pindar providers had TWP90 ratios above 5%, primarily in the productive segment, which is more directly affected by economic dynamics.

Regulatory Perspective and Future Prospects

OJK projects continued positive growth for the pindar industry in 2026, driven by digitalization of financing services and product innovation using alternative data. To address potential challenges, OJK emphasizes the need for pindar providers to strengthen credit risk mitigation and economic resilience. The regulator suggests that industry players should focus on enhancing their risk management frameworks to maintain sustainable growth and asset quality in the evolving digital lending landscape.