Heaptalk, Jakarta — Following the revocation of TaniFund’s business license, effective May 3rd, 2024, Indonesia’s Financial Service Authority (OJK) urged this peer-to-peer lending startup to form the liquidity team through the General Meeting of Shareholders (GMS) agenda.
As stipulated in the OJK regulation (POJK) No 10 of 2022 article 85 concerning liquidation, where this provision regulates the limit for forming a liquidation team no later than 30 calendar days from the date the business license depilation.
“For this reason, organizers whose business licenses have been revoked are required to hold a General Meeting of Shareholders to decide on dissolution and form a liquidity team 30 calendar days after the business license revocation, in this case TaniFund,” affirmed Chief Executive Supervisor of Financing Institutions, Venture Capital Companies, Microfinance Institutions and Financial Services Institutions (PVML) at OJK, Agusman, during the Monthly Board of Commissioners Meetings virtually. (05/13)
Besides carrying out a liquidation scheme, TaniFund must also provide an information center and user complaint service to protect users and related parties. Meanwhile, this fintech startup’s shareholders, administrators, and employees are prohibited from guaranteeing, transferring, pledging, using assets, and taking other actions that could shrink TaniFund’s assets’ value.
As is known, OJK sanctioned this startup by revocation of its business license because the company neglected to fulfill the minimum equity requirement and did not apply supervisory recommendations.
The startup’s business performance also reportedly deteriorated, reflected in its 90-day default rate (TWP90), which attained 63.93%, exceeding the threshold set by OJK of around 5%. In effect, TaniFund’s 90-day payment success rate only reached 36.07%.
Aligned with financial institution regulation No. 10 of 2022, Agus said that the OJK could impose administrative sanctions in the form of written warnings up to three times with a maximum validity period of two months. Based on the inspection and in-depth process, the OJK found indications of general criminal violations. He also claimed that his party had transferred the TaniFund issue to law enforcement for further processing.
“OJK has handed over criminal cases related to TaniFund to law enforcement officials for further processing under applicable statutory provisions,” Agus said in his statement.
