Heaptalk, Jakarta — Indonesia’s Financial Service Authority (OJK) continues to oversee and monitor Investree’s startup as the Technology-Based Joint Funding Services (LPBBTI) organizer to respond alleged violation of operational provisions and consumer protection.
“OJK is conducting an in-depth investigation by directly examining Investree. OJK urged the startup to continue providing services to the community following good governance and appealed to the public to be wise in responding to the public’s concern with this company,” affirmed Aman.
He also said the OJK would follow up by taking the necessary steps following the provisions in the case of alleged violations, including working with Law Enforcement Officials to support the process against irresponsible parties for the violations that occurred.
Previously, this peer-to-peer lending startup was reportedly experiencing a lousy credit issue, leading to speculation about closing the company’s operations. 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.
The problems made the company’s majority shareholder, Investree Singapore Pte Ltd, agree to dismiss the startup’s Co-Founder and CEO, Adrian Gunadi, from the board, effective on January 31st, 2024, amidst allegations of misconduct and obstacles encountering the company.
As stated by Co-Founder and Director of Investree Singapore Pte. Ltd., Kok Chuan Lim, “We look forward to completing the restructuring plan with the injection of new equity from investors.”
In an official letter that DealStreetAsia reported, Adrian admitted to diverting Investree’s funds to a personal account and used his position as director to make the startup the guarantor for an individual company, which also affected the turmoil.
After experiencing credit failure issues, previous investor Investree SBI Holdings injected US$ 7 million (around Rp. 109.5 billion) to help the company’s management resolve the problems.
DealStreetAsia reported that around US$4.5 million of the funds were used for company expenses, including salaries, taxes, debt, and other costs. Furthermore, the company will employ about US$1.15 million for legal matters, around US$750,000 for cost savings, US$500,000 in funds to tackle credit insurance and collection costs, and about US$100,000 for rental expenses.
