The Financial Services Authority (OJK) has issued a warning to finance companies and fintech peer-to-peer (P2P) lending platforms to remain alert to the risk of payment defaults resulting from the rising number of layoffs (PHK).

Agusman, Chief Executive Supervisor of Finance Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions (PVML) at OJK, stressed the need for caution and stronger risk mitigation strategies in response to these risks.

“We will continue to monitor how the surge in layoffs is impacting the multifinance and P2P lending sectors. Companies are urged to uphold prudential principles, establish robust risk management systems, and continuously innovate to suppress the rising threat of defaults amidst both domestic and global economic fluctuations,” Agusman stated in a written release on Monday (May 19, 2025).

According to Agusman, the risk profile of the multifinance and P2P lending industries remains generally stable. As of March 2025, the gross Non-Performing Financing (NPF) ratio in the multifinance sector had decreased to 2.71%, and the 90-day default rate (TWP90) for the P2P lending industry held steady at 2.77%.

“OJK continues to monitor the level of non-performing credit closely,” he added.

OJK is also closely observing the impact of the national economic slowdown in Q1 2025 on the digital financing sector. Despite these economic headwinds, the P2P lending industry still has room to grow, supported by strong adaptability and digital capabilities.

“Although the national economy experienced a slowdown in the first quarter of 2025, the P2P lending industry still holds positive growth potential. High flexibility, digitalization, and a focus on underserved market segments are key strengths, particularly for short-term financing and MSME support. OJK will continue to oversee this growth to ensure it remains healthy and sustainable,” concluded Agusman.