Indonesia’s P2P industry sees growing interest as alternative investment platforms

Indonesia’s P2P industry sees growing interest as alternative investment platforms

Photo by Micheile Henderson on unsplash

Institutional investors such as banks and investment management firms are increasingly flocking to peer-to-peer lending platforms in Indonesia to deploy their funds, as they hunt for higher returns amid a lacklustre and uncertain equity market environment.

What is driving institutional capital in this fast-growing space is the huge demand from Indonesia’s largely under-banked borrowers, and higher returns offered by P2P lenders. As of January 22, 2020, there were a total of 164 P2P companies registered by the Indonesian market regulator Financial Services Authority (OJK), against 88 such entities at the end of December 2018.

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