March 27, 2026 | 12:53 pm
TEMPO.CO, Jakarta - The Business Competition Supervisory Commission (KPPU) has ruled that 97 P2P lending fintech businesses or online loan providers have been proven to engage in cartel practices regarding loan interest rates. Head of the KPPU's Public Relations and Cooperation Bureau, Deswin Nur, stated that the defendants violated Article 5 of Law Number 5 of 1999 concerning the Prohibition of Monopoly Practices and Unfair Business Competition.
In light of these violations, the loan providers face various fines totaling Rp755 billion. "This decision marks the end of one of the largest business competition cases ever handled by the KPPU, both in terms of the number of defendants and the industry's direct impact on the general public," Deswin said in an official statement on Thursday, March 26, 2026.
Deswin explained that based on evidence and facts during the trial, the Commission concluded there were explicit agreements among the defendants to determine interest rates and economic benefits. According to him, setting an upper limit on interest rates well above the market equilibrium is non-binding and ineffective in protecting consumers.
Furthermore, the imposition of an interest rate ceiling is considered to have potentially functioned as a mechanism facilitating price coordination among business players. Deswin noted that under such circumstances, the existence of an upper limit guided the expectations and pricing strategies of these players, encouraging coordinated behavior in setting rates.
"As a result, this policy reduces the intensity of price competition and hampers the competitive dynamics of the online loan market," he added.
The online loan interest rate cartel case has been unfolding since last year. Previously, the Indonesian Joint Fintech Association (AFPI) rejected allegations that there was any agreement to determine maximum interest rate limits or engage in price fixing.
According to AFPI Chair Entjik S. Djafar, the KPPU's allegations were unfounded because AFPI’s decision to set a maximum interest rate was intended to shield consumers from predatory lending practices by illegal online lenders.
"The setting of the maximum limit is also in line with directives from the Financial Services Authority (OJK) at the time. Therefore, there is absolutely no illegal agreement involved," stated Entjik in an official release quoted on Sunday, September 14, 2025.
The OJK has also stated that AFPI's regulation of maximum interest rates was in accordance with the authority's directives. "The determination of economic benefit limits by AFPI was carried out to protect the public from high-interest rates, maintain the integrity of the lending industry, and distinguish legal online loans from illegal ones," said Agusman, Executive Director of Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions at OJK, in a written response on Sunday, September 7, 2025.
Read: OJK: Indonesian Banks Stay Strong Despite Negative Outlook
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