Jakarta, Indonesia Sentinel — Indonesia’s Financial Services Authority (OJK) has reported that the total outstanding debt from online loans or peer-to-peer (P2P) lending services in the country reached Rp 69.39 trillion (approximately $4.44 billion) by July 2024. This figure represents an increase of over Rp 2.5 trillion compared to the previous month.
According to the latest OJK report, P2P Lending Statistics for July 2024, the majority of these loans, amounting to Rp 63.48 trillion, were taken out by individuals. The remaining Rp 5.90 trillion came from corporate borrowers.
West Java became the province with the highest outstanding online lending debt in Indonesia, with a total of Rp18 trillion across 5.2 million active loan recipient accounts. However, the province’s non-performing loan (NPL) rate, measured by loans overdue for more than 90 days (TWP 90), stood at 3.09%. This translates to approximately 160,680 users in West Java who are behind on their payments.
Interestingly, West Java’s total P2P lending debt is nearly equivalent to the combined debt of all regions outside Java Island, which reached Rp 18.46 trillion from 5.68 million active accounts.
The capital, Jakarta, holds the second-highest amount of online lending debt, with Rp 11.9 trillion spread across 2.29 million accounts. The TWP 90 rate in Jakarta is slightly higher at 3.20%.
In third place is East Java, with outstanding loans totaling Rp 8.84 trillion from 2.28 million active accounts. Banten follows in fourth place with a debt load of Rp 5.69 trillion across 1.39 million accounts as of July 2024.
Central Java ranks fifth in online lending debt, recording Rp 5.43 trillion in outstanding loans spread across 1.9 million accounts, with a TWP 90 rate of 2.55%.
Notably, all five of the top regions for online lending debt are located on Java Island. The only province from Java not to make the top five is the Special Region of Yogyakarta.
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Yogyakarta’s total outstanding P2P lending debt was Rp 1.05 trillion as of July 2024, making it the 13th-highest in Indonesia. This figure is lower than the debt held by seven provinces outside Java, highlighting the relatively modest scale of online borrowing in the region.
With the rapid growth of online loans or P2P lending services in Indonesia, concerns around debt accumulation and default rates are rising, particularly in the most populous regions. The OJK continues to monitor the industry closely, ensuring that lenders and borrowers alike adhere to responsible lending practices.
(Raidi/Agung)
