OJK applies four P2P Lending policies to encourage MSME funding

So we hope that with the presence of P2P Lending, MSMEs will develop so that their absorption is quite high

Jakarta (Armfalcon.com) – The Financial Services Authority (OJK) has implemented four policies on Fintech Peer to Peer Lendind (P2P Lending) to encourage funding for Micro, Small and Medium Enterprises Units (MSMEs).

Fintech P2P lending is a direct lending and borrowing service between lenders or lender, with borrowers or information technology-based loan recipients. Currently, there are 102 fintech P2P lending platforms, including 7 which are platforms with a sharia system.

The first policy, OJK encourages the Indonesian Joint Funding Fintech Association (AFPI) to work with related associations or organizations to help its members carry out ecosystem collaborations to encourage MSMEs to expand into the digital realm or Go Digital.

“So this is one of our motivator initiatives from OJK and fintech associations as actors themselves to increase MSMEs, especially related to digitalization because currently there are only 19.5 million, so the latest is 60% targeting MSMEs that go digital,” said the Director of Supervision Financial Technology Financial Services Authority (OJK) Tris Yulianta in Jakarta, Tuesday.

Also read: OJK calls cybersecurity a challenge in fintech P2P lending

Second, OJK urges Fintech P2P Lending companies to cooperate with banking institutions. On the one hand, banks need credit expansion, especially distribution to MSMEs where the government has set a target of 30 percent in 2024.

Third, OJK continues to encourage fintech P2P lending to increase the portion of funding distribution to the productive sector. In March 2023, as much as IDR 19.48 trillion or 38.18 percent of outstanding funding was specifically aimed at the MSME sector. This figure has increased compared to the last amount in December 2022 of 37.95 percent of the total outstanding industry funding.

The fourth policy, OJK asks the P2P Lending platform to carry out educational activities with the aim that the public or MSMEs take advantage of P2P Lending services by carrying out digital economic activities wisely and carefully. According to him, one serious obstacle hindering the progress of digitalization among Indonesians is digital literacy and education.

“Then if we talk about why P2P Lending targets MSMEs, because currently there are 65 million MSME actors who are able to absorb around 120 million human resources or nearly 97 percent of Indonesia’s total non-PC working in MSMEs. So we hope that with the presence of P2P Lending, MSMEs will develop so that absorption is quite high,” he said.

Also read: OJK: P2P lending can be an alternative investment and loan facility

Reporter: Bayu Saputra
Editor: Ahmad Wijaya
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