Indonesian Financial Services Authority (OJK) The government plans to raise the cap on peer-to-peer (P2P) fundraising from the current limit of 2 billion Indonesian rupiah, specifically to fund productive activities for business and economic activities rather than consumption for personal use.
The move is part of the new Regulation on Information Technology-Based Joint Funding Services (RPOJK LPBBTI), which is currently under development and incorporates feedback from various stakeholders.
OJK recognizes the valuable input from these stakeholders and is refining the regulation of the LPBBTI industry as part of its mandate under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (UU P2SK).
Key regulatory improvements include an improved institutional framework with a focus on providing greater support to the productive sector, as well as strengthened risk management, governance and consumer protection.
This initiative is in line with the LPBBTI Development and Strengthening Roadmap 2023-2028, which aims to contribute to SMEs and promote national economic growth.
Eligible LPBBTI providers must meet certain criteria, including maintaining a TWP90 ratio of up to 5%.
The TWP90 ratio measures defaults or late payments more than 90 days after the due date.
Featured Image Credit: Free Pick
