OJK Encourages Productive Loan in New Peer-to-Peer Implementing Regulation: What is the Impact for Businesses?

In November 2023, Indonesia’s Financial Services Authority or OJK (Otoritas Jasa Keuangan) introduced a new implementing regulation on peer-to-peer or P2P lending (which itself is regulated by OJK Regulation No. 10/POJK.05/2022 on Information Technology-Based Collective Financing Services (“P2P Regulation”).

The new implementing regulation, Circular Letter No. 19/SEOJK.06/2023 on the Organisation of Information Technology-Based Collective Financing Services (“Circular Letter”) regulates the provisions in the P2P Regulation in more detail, most notably on maximum economic benefit, scoring criteria of borrowers, level of loan quality, and performance publication. Clients should note that the implementing circular letter for the previous regulation, namely OJK Circular Letter No. 18/SEOJK.02/2017, has not been revoked. As it is also in line with the new Circular Letter, it remains valid.

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