OJK Conducts In-Depth Probe on Investree Following CEO’s Misconduct Allegations

OJK Conducts In-Depth Probe on Investree Following CEO’s Misconduct Allegations

by February 22, 2024

The Indonesian Financial Services Authority (OJK) is closely monitoring Investree, a fintech peer-to-peer lending platform, following public reports of potential operational and consumer protection violations.

The regulator is conducting an in-depth investigation through direct examinations of Investree, responding to recent concerns raised by the public. If violations are proven, the OJK said that it will take necessary actions, potentially collaborating with law enforcement officials.

While encouraging Investree to operate responsibly, the OJK urged the public to remain cautious and informed regarding these issues.

This announcement follows recent financial challenges faced by Investree, including allegations of misconduct against its former CEO Adrian Gunadi.

Gunadi was alleged to have diverted funds from Investree to his personal account and used his position to make the lending firm a guarantor for a personal company.

Investree has been facing liquidity issues despite securing a US$231 million Series D funding round led by Qatar’s JTA International Holdings. There was a delay in fund disbursement, exacerbating the company’s financial challenges, raising concerns about its ability to cover operational costs and generate revenue.

Moreover, Investree has faced scrutiny over its handling of bad loans, with its TKB90 success rate falling significantly below the industry average, prompting lawsuits from lenders and investigations by authorities. The OJK has previously imposed administrative sanctions on the platform due to these issues.

Investree managed to secure a critical US$7 million rescue package from its existing investor SBI Holdings earlier this month.

The company had earmarked US$4.5 million of this package for employee salaries, which encompasses owed salaries, benefits, taxes, payables, and other related expenses.

An additional US$1.15 million is allocated for legal and audit fees, US$750,000 is designated for retrenchment costs, US$500,000 for credit insurance and collections expenses, and US$100,000 for rent.