Jakarta – Indonesia’s peer-to-peer (P2P) lending industry continues to expand, reaching an outstanding loan distribution of Rp82.59 trillion (US$5.08 billion) by May 2025. The figure represents an annual growth of 27.93%, although a slight deceleration from April’s 29.01% year-on-year pace, according to the Financial Services Authority (OJK).
“The industry’s P2P lending outstanding as of May 2025 recorded year-on-year growth of 27.93%, reaching Rp82.59 trillion,” said Agusman, Chief Executive of Supervision for Financing Institutions, Venture Capital, Microfinance, and Other Financial Services at OJK, during a virtual monthly press briefing on July 8.
The data underscores a steady upward trajectory in fintech financing. At the end of 2024, P2P lending stood at Rp77.02 trillion. The momentum continued into January 2025 at Rp78.5 trillion, February at Rp80.07 trillion, and April at Rp80.94 trillion, before reaching the May peak.
However, a brief anomaly occurred in March when the industry saw a slight pullback to Rp80.02 trillion, marking a rare monthly contraction. Despite that, the overall trend remains positive.
Credit Risk Indicator Breaches 3% Threshold
Alongside the growth, OJK reported that the industry’s aggregate 90-day portfolio at risk (TWP 90) reached 3.19% in May — the first time the ratio has crossed the 3% threshold in the past year.
“Although TWP 90 remains within a manageable range, we are seeing a slight uptick year-on-year from 2.79% in May 2024,” Agusman noted. In April 2025, the ratio was still at 2.93%, indicating a continued upward trend in non-performing loans within the fintech sector.
The increase in TWP 90 highlights a growing credit risk that may require closer monitoring, particularly as lending volumes continue to rise. While the sector remains largely healthy, sustained attention on credit quality is crucial to maintain long-term industry resilience.
Strategic Implications for Stakeholders
The figures arrive at a time when fintech platforms in Indonesia are facing increased scrutiny over risk management and compliance standards. With P2P lending now playing a significant role in expanding access to credit, especially among underserved populations, ensuring systemic integrity is a shared responsibility between platforms and regulators.
Industry observers note that the continued growth — alongside early signs of stress — calls for more robust borrower profiling, data analytics integration, and adaptive regulatory frameworks to mitigate risk without stifling innovation.
As fintech continues to shape the future of lending in Indonesia, balancing growth with governance will remain a defining challenge for the sector in the years ahead.
