Heaptalk, Jakarta — Indonesia’s Financial Services Authority (OJK) continues investigating the suspected fraud case in PT Investree Radhika Jaya (Investree).
Amidst lawsuits from dozens of lenders, fintech Investree previously claimed to receive additional funding from Qatar’s JTA Holdings as of February 2024 for troubleshooting moves. Nevertheless, Indonesia’s OJK has yet to receive reports regarding additional capital from Qatar. As noted by the OJK, this startup has not yet fulfilled the minimum equity requirement of US$153,421, approximately Rp2.5 billion.
“OJK has carried out closed monitoring of the Investree’s condition and has communicated intensively with the Investree’s management and shareholders to ensure commitment to resolving problems, including plans to augment their capital. However, we have not received a report on the realization of the capital injection.” Chief Executive Supervisor of Financial Institutions, Venture Capital Companies, Microfinance Institutions, and other Financial Service Institutions at OJK, Agusman, affirmed.
To resolve the continued issues with Investree, this peer-to-peer lending startup reportedly received a bailout of US$6.7 million from its existing investor, SBI Holdings, to be allocated for employee payroll, credit insurance, and collection costs.
“If Investree fails to meet its commitments within the specified time limit, OJK will be compelled to take action by issuing administrative sanctions in the form of warning letters, business activities restrictions, and even revocation of business licenses,” Agus emphasized.
This fintech startup was reportedly experiencing a lousy credit issue as of last year. Investree’s bad credit ratio (TWP90) was observed to reach 12.8% last January and continued to rise to 16.44% in early June 2024. Meanwhile, the bad credit ratio for fintech companies in Indonesia must be maintained at a maximum of 5% following regulations.
The problem was getting more complex due to Investree’s CEO, Adrian Gunadi, dismissal from the board, effective January 31st, 2024. He previously admitted to diverting Investree’s funds to a personal account. He used his position as director to make the startup the guarantor for an individual company, which also affected the turmoil.
