Heaptalk, Jakarta — Peer-to-peer lending (P2P) startup Investree is reportedly experiencing a lousy credit issue, leading to speculation about closing the company’s operations.
Moreover, according to the company’s data on the official website, Investree’s 90 success rate (TKB90) reached 87.42%, whereas the company’s 90 Default Rate (TWP90) or lousy credit reached 12.58%. TWP output soared by 3.29%, approximately three-fold, as of early December 2023.
Responding to this matter, the Chief Executive Supervisor of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions at Indonesia’s Financial Service Authority (OJK), Agusman, delivered that his party has intensively coordinated with Investree regarding this issue.
“OJK has also held several meetings with Investree to monitor and discover the company’s current conditions. If we find further violations, we will impose administrative sanctions following applicable regulations in the form of written warnings, fines, restrictions on business activities, and revocation of business permits,” added Agusman.
Investree’s management response
According to management, this high level of bad credit remains normal as the borrowers repay their loans on average at the end of each month. Nevertheless, Investree will continue to execute improvement moves to address this issue.
“Following the trend, the TKB90 amount will rise at the end of the month as the number of loan returners increases. Simultaneously, the company will close the final TKB90. This is normal if the TKB90 output tends to be low from the beginning to the middle of the month.” Investree’s Chief Sales Officer, Salman Baharuddin, said.
Based on Salman’s perspective, the lending and borrowing completion rate can refer to the current month and the final position or closing at the end of the month because there will still be loan disbursement and loan payments, which the output is also reported to the OJK.
Regarding the shutdown of the operation, Investree also denied the news of the company’s closing its operations. According to management, the company has carried out platform system maintenance for websites and mobile applications for lenders from December 29th, 2023, to January 2nd, 2024. This matter is also confirmed by OJK’s statement claiming that the Investree company has yet to return its business permit.
“OJK has not received any return of permits from Investree. Regarding sanctions, as long as there is no compliance, OJK will apply further sanctions based on the provisions.” Agusman affirmed.
