Indonesia’s Financial Services Authority (OJK) plans to raise the maximum limit for peer-to-peer (P2P) funding above the current IDR 2 billion cap, specifically for productive funding used for business and economic activities, rather than consumptive funding for personal use.
This move is part of a new regulation for Information Technology-Based Joint Funding Services (RPOJK LPBBTI), which is currently in development and incorporates feedback from various stakeholders.
OJK acknowledges the valuable input from these stakeholders and is refining the LPBBTI industry regulations as part of its mandate under Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK).
Key improvements to the regulations include enhanced institutional frameworks, risk management, governance, and consumer protection, with a focus on bolstering support for the productive sector.
This initiative aligns with the LPBBTI Development and Strengthening Roadmap 2023-2028, which aims to boost contributions to MSMEs and national economic growth.
Eligible LPBBTI providers must meet specific criteria, including maintaining a maximum TWP90 ratio of 5 percent.
The TWP90 ratio measures defaults or delays in fulfilling obligations beyond 90 days from the due date.
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