Heaptalk, Jakarta — Indonesia’s Financial Service Authority (OJK) OJK revoked the business license of the peer-to-peer lending fintech, TaniFund, as the startup failing to meet minimum equity requirements and not implementing supervisory recommendations.
TaniFund’s business performance reportedly deteriorated, reflected in the company’s 90-day default rate (TWP90), which reached 63.93%. As a result, this P2P startup’s 90-day payment success rate (TKB90) only reached 36.07%. TaniFund’s TWP90 has exceeded the threshold set by the OJK of 5%.
This issue is becoming more complicated because four lenders filed lawsuits from January to April 2024. The first lawsuit was registered on January 18, 2024, with losses reaching USD8,143, or around Rp131 million. TaniFund also received a lawsuit from another party that emerged on February 12, 2024, with a dispute value of USD17,791, approximately Rp286.20 million.
Furthermore, the third litigant registered this case on March 25, 2024, with a loss value of USD3,233 (around Rp52 million). Most recently, the fourth lawsuit was also registered on April 30, 2024, with the highest dispute value attaining USD159,786, equal to Rp2.57 billion.
According to the Chief Executive Supervisor of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions (PVML) at OJK, Agusman, his party summoned TaniFund for further explanation.
Besides carrying out supervision and imposing administrative sanctions gradually to restrictions with Business Activity Restrictions (PKU), the country’s Financial Institution has also communicated intensively with the management and shareholders to finalize the TaniFund issue resolution.
“However, TaniFund’s management and shareholders could not overcome the problem within the time limit we set. With the revocation of the business license, TaniFund startup must discontinue their business activities in the Information Technology-Based Joint Funding Service (LPBBTI) industry,” affirmed Indonesia’s OJK.
As is known, OJK’s supervisory actions, the imposition of administrative sanctions on TaniFund and the revocation of its business license are following OJK Regulation Number 63/POJK.05/2016 concerning Amendments to OJK Regulation Number 11/POJK.05/2014 concerning Direct Examination of Nonbank Financial Services Institutions and OJK Regulations Number 10/POJK.05/2022, concerning Information Technology-Based Joint Funding Services (LBBTI).
Established in 2017, this P2P lending startup is designed to connect local farmers with lenders to provide them access to financial services. According to its official website, TaniFund has distributed loans worth US$32.4 million. The startup has also performed total loans paid US$24.7 million, with 295 borrowers and 7,096 lenders.
