Heaptalk, Jakarta — OJK has tightened the regulation for Peer-to-Peer Lending (P2P), especially regarding the minimum age and minimum income to access. This new regulation is contained in OJK Circular Letter (SEOJK) Number 19/SEOJK.05/2023 which is planned to be implemented no later than January 2027.
“As stated in OJK Circular Letter (SEOJK) Number 19/SEOJK.05/2023 concerning the Implementation of Information Technology-Based Joint Funding Services, the minimum age for lenders is 18 years or has married and the minimum income for lenders is Rp. 3,000,000 per month,” said OJK in a press release.
In addition, the new policy also regulates that the nominal portion of financing circulating by Non-Professional Funders is compared to the total nominal financing circulating, a maximum of 20%, which takes effect no later than January 1, 2028.
Regarding this regulation, Deputy Chairman of Commission XI of Indonesian Parliament, Hanif Dhakiri responded it positively. According to Hanif, this regulation must be implemented quickly to provide more protection for consumers by preventing them from a debt trap.
Hanif stated that P2P lending is increasingly popular among young people as the fintech provides easy access. However, as this phenomenon is not accompanied by sufficient financial literacy, the appearance of P2P lending leads many customers, especially young people, to fall into a debt trap.
“The lack of literacy about money management makes many people use this service for non-essential needs,” said Hanif.
Apart from that, providing loan limit that are not accompanied by sufficient repayment capacity is also a factor to drive the enhancement in the default number.
“With this new regulation, OJK not only protects consumers but also ensures that P2P lending function as a healthy financial solution,” said Hanif.
Apart from age limits and income, Hanif suggested the importance of regulations regarding adjusting income to the maximum loan amount.
“Determining the maximum loan amount, installments must also be adjusted to the user’s income, a maximum of 30% of monthly income. “Moreover, OJK needs to regulate interest limits, so it will not burden consumers,” said Hanif.
