Indonesia’s OJK grants new licences to six fintech lenders

Indonesia’s Financial Services Authority (OJK) has granted business licences to an additional six fintech startups as of September this year.

The six startups are Modalku (the Indonesian arm of Funding Societies), KTA Kilat (Pendanaan), Kredit Pintar, Maucash, Finmas (Sinarmas and Oriente-backed fintech firm) and KlikACC.

OJK had granted licences to seven fintech startups — Danamas, Investree, Amartha, Dompet Kilat, KIMO, Toko Modal, and UangTeman — in August this year.

So far, there are 127 fintech companies registered under OJK. Among those that are registered but yet to receive a licence are KoinWorks, Akseleran, Kredivo, Taralite and Dana Cita.

“We expect that the OJK’s license to P2P lending firms will give more trust to the public and investors in a bid to expand the number of borrowers, lenders and the loan distribution, giving more financial access to the whole Indonesian community,” Investree co-founder and Indonesian Fintech Lenders Association (AFPI) chairman Adrian Gunadi said in a statement.

Tumbur Pardede, a spokesman for AFPI, said that the OJK licences also boost the credibility of fintech startups and accelerate the collaboration between P2P lending startups with related partners, including credit scoring agency, digital signature providers, insurance firms, and banks.

According to OJK data, total loans disbursed by fintech P2P lenders as of August stood at Rp 54.71 trillion ($3.87 billion), up more than three times from Rp 11.7 trillion ($828.65 million) last year.

OJK also announced that it has cracked down on another 133 illegal fintech firms as of early October and blocked their platforms from operating in Indonesia.

Throughout this year, OJK has stopped the operation of around 1,073 illegal fintech firms in Indonesia.