TEMPO.CO, Jakarta - Indonesia's financial technology (fintech) industry, especially peer-to-peer or P2P lending also known as online loans, is growing rapidly. The Indonesian Fintech Association (Aftech) noted that the total loans facilitated reached Rp17.3 trillion as of April 2023.

Aftech Chairman Pandu Patria Sjahrir said that the fintech industry has developed rapidly in recent years. In 2016, there were only 24 companies joining the association, and the number skyrocketed to 340 as of date.

“The development of fintech lending is very high. The accumulated loans in 2018 amounted to Rp3 trillion and increased to Rp17.3 trillion as of April 2023 or grew 42 percent,” Pandu said at a discussion on Indonesia’s fintech lending industry on Thursday, June 8, 2023, in Jakarta.

Additionally, the number of lenders reached 1 million as of April 2023 from 115.000 lenders, and the number of borrowers rose from just 330 to 111.18 million.

“[The number of borrowers] has grown 180 times,” Pandu added.

He explained that the success paying rate in 90 days as of April 2023 reached 97.18 percent. According to him, this figure is much better than in August 2020 which was 91 percent.

“Non-performing loans (NPL) as of April 2023 stands at 2.82 percent,” he said.

Meanwhile, the profitability rate for fintech lending recorded a positive trend of 4.52 percent, and non-equity retail reached 9.34 percent as of April 2023.

“What we are focusing on is improving the governance of fintech lending to be better and more sustainable,” Pandu concluded.

AMELIA RAHIMA SARI | RIRI RAHAYU

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