OJK plans to limit institutional lenders in fintech lending
Institutional lenders (sometimes referred as ‘super lenders’) currently dominate in providing capital for fintech lending. Based on OJK data in September 2021, retail investors contributed 22.8% of outstanding loans with a value of US$ 430 million (IDR 6.14 trillion). However, OJK plans to implement regulations to encourage more retail investors. Current regulation limits a single institutional lender’s funds to be capped at 25% of outstanding loans to manage concentration risk. OJK plans to increase regulations for institutional investors, with emphasis on international investors given the lack of oversight from Indonesia. As of September 2021, international lenders still contributed 24.2% of outstanding loans.