Heaptalk, Jakarta — Koinworks‘ subsidiary, KoinP2P, has reportedly been victim to fraudulent activities by borrowers, resulting in losses amounting to US$22.8 million, approximately Rp365 billion.
The issue arose due to alleged criminal misconduct attributed to a borrower, identified by the initial “M,” the proprietor of the MPP business conglomerate. As a repercussion, the disbursement of funds to lenders has been inevitably delayed. Also, this fintech lending startup has since been inundated with complaints from lenders, particularly across social media platforms.
According to the Chief of Impact KoinWorks, Angelique Timmer, the company took swift and proactive measures to address the issue, including formally reporting the incident to law enforcement authorities and Indonesia’s Financial Services Authority (OJK). This step aims to facilitate a thorough investigation and ensure a comprehensive resolution.
“Proactive measures have been implemented to address the operational challenges stemming from fraudulent activities perpetrated by external parties associated with KoinP2P. As part of mitigation measures, the company has instituted a temporary standstill, a strategic move designed to enable a comprehensive refocus on core priorities while fortifying the foundation of its business operations,” She added, cited in Kontan.
As is known, KoinP2P, officially operated by PT Koinworks Manajemen Konsultasi, is a platform developed by PT Lunaria Annua Teknologi, which secured official licensing from Indonesia’s OJK in 2020. The company is led by Jonathan Bryan, the Chief Executive Officer; Bernard Adrianto Arifin, the Chief Operating Officer; and Benedicto Haryono, the Commissioner.
Notably, Benedicto Haryono is also the founder of Koinworks. The startup specializes in productive lending, offering financial solutions tailored to business needs. As a prominent fintech lending platform, KoinP2P has funded over 11,000 micro, small, and medium enterprises (MSMEs).
In response to the issue, Indonesia’s OJK has summoned the management of KoinP2P to deliver a comprehensive account of the underlying factors contributing to the challenges encountered, and outline the definitive strategies and remedial actions being implemented to resolve them.
“OJK is also conducting an on-site examination of KoinP2P. We identified the deficiencies in the implementation of policies and operations, governance practices, risk management, or compliance with prevailing laws and regulations, we will take the necessary measures to enforce compliance. These actions aim to uphold the integrity and foster a robust, ethical financial services sector in Indonesia.” Acting Head of the Department of Literacy, Financial Inclusion and Communication, Ismail Riyadi, said.
