INDONESIA Trends and Developments Contributed by: Vik Tang, Michelle Virgiany, Almira Tengku, Ruth Ginting and Ryu Wirjadi, Hiswara Bunjamin & Tandjung in association with Herbert Smith Freehills Kramer
ing the OJK and the Indonesian Competition Commis - sion ( Komisi Pengawas Persaingan Usaha or KPPU) highlight a clear shift towards tighter supervision and heightened accountability for P2P lending plat - forms. Despite this trend, the sector has continued to expand, reflected in the 21.62% year-on-year growth in outstanding P2P loans as of August 2025. On 31 July 2025, the OJK issued OJK Circular Letter 19/2025 on Implementation of Information Technolo - gy-based (P2P) Lending Services (the “P2P Circular Letter”), which replaced OJK Circular Letter 19/SEO - JK.06/2023 and is a key implementing regulation for OJK Regulation 40 of 2024 (“OJK Regulation 40”). The P2P Circular Letter expands the level of detail govern - ing day-to-day operations of P2P lending platforms, signalling the OJK’s intention to move from principle- based oversight to a more prescriptive supervisory model. Some of the notable rules provided under the P2P Circular Letter are: • Further elaboration of the General Meeting of Lenders ( Rapat Umum Pemberi Dana or RUPD), a concept first introduced under OJK Regulation 40. The P2P Circular Letter requires platforms to pre - pare detailed internal guidelines governing lender meetings, including procedures for convening meetings, documentation and cost allocation. • Introduction of a clearer segmentation between professional and non‑professional lenders, with funding limits tied directly to income levels. Profes - sional lenders are defined as: (a) high‑income Indonesian citizens at least 18 years old or married and with annual gross income above IDR500 million, who may lend up to 20% of their annual income through a P2P lending platform; (b) foreign individuals; (c) legal entities; (d) business entities; and (e) international institutions. Non‑professional lenders are defined as Indonesian citizens earning no more than IDR500 million gross annually who may lend up to 10% of their an - nual income through a P2P lending platform. Importantly, platforms must ensure that funding
from non‑professional lenders does not exceed 20% of the total outstanding loans, reinforcing the OJK’s focus on retail investor protection. • On the borrower side, the P2P Circular Letter reconfirms that all borrowers must be Indonesian individuals or Indonesian entities and domiciled in Indonesia. Individual borrowers must be at least 18 years old or married, have gross income of at least IDR3 million per month, and must use their own devices to access the P2P platform – a measure aimed at mitigating identity misuse and fraud. • In line with OJK Regulation 40, the P2P Circular Letter clarified that the maximum funding limit of IDR2 billion per borrower also applies to related borrowers, including those sharing the same source of repayment or having affiliate relation - ships. While productive loans of up to IDR5 billion remain possible, platforms must assess relat - ed‑party exposure carefully to avoid circumvention of funding caps. • The P2P Circular Letter also revised the structure for calculating economic benefits and late-payment penalties, shifting the focus to the funding amount and tenor (that is, the time remaining until the financial contract reaches its maturity date). The maximum economic benefits and late-payment penalties are differentiated based on the type, amount, and tenor of the funding. For productive funding of up to IDR50 million with a tenor of no more than six months, the maximum economic benefit and late-payment penalty are capped at 0.275% per day. For productive funding of up to IDR50 million with a tenor exceeding six months, as well as productive funding exceeding IDR50 million regardless of tenor, the applicable cap is reduced to 0.1% per day. By contrast, consump - tive lending is subject to a higher cap of 0.3% per day for tenors of no more than six months, and 0.2% per day for tenors exceeding six months. In all cases, the total combined economic ben - efits and penalties charged to borrowers may not exceed 100% of the original funding amount. • The P2P Circular Letter further introduced a formal mechanism for portfolio transfers where P2P plat - forms are subject to business activity restrictions or cannot be rehabilitated. This framework is intended to safeguard lenders and borrowers by ensur -
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