OJK Enhances Regulations for Tech-Based Funding to Support MSMEs

JAKARTA, RAKYAT NEWS — The Financial Services Authority (OJK) is set to raise the maximum limit for productive funding significantly higher than the previous cap of Rp2 billion, aimed at bolstering support for the productive business sector through Technology-Based Joint Funding Services (LPBBTI).

Currently, OJK is in the process of drafting the Financial Services Authority Regulation on Technology-Based Joint Funding Services (RPOJK LPBBTI), also known as fintech peer-to-peer lending (fintech P2P).

“We are currently in the rule-making process for RPOJK LPBBTI, which includes gathering insights and feedback from stakeholders,” said Aman Santosa, Head of the Department of Financial Literacy, Financial Inclusion, and Communication at OJK in Semarang, Central Java

LPBBTI platforms seeking to disburse the increased maximum funding limit must meet specific criteria, including a maximum TWP90 ratio of 5 percent.

“TWP90” refers to the “Total Working Papers 90,” which is a financial term used to denote the ratio of non-performing loans that are overdue by 90 days or more, relative to the total loans disbursed. The requirement you mentioned suggests that LPBBTI platforms seeking to disburse higher funding limits must ensure that this ratio does not exceed 5 percent.

TWP90 measures the default rate or failure to settle obligations stated in funding agreements within 90 days after the due date.

The funding initiative for the productive sector aligns with the 2023-2028 Development and Strengthening Roadmap for LPBBTI, aimed at enhancing positive contributions to micro, small, and medium enterprises (MSMEs) and national economic growth.

OJK acknowledges and values inputs and perspectives from various stakeholders, currently refining LPBBTI industry regulations as part of its mandate under Law Number 4 of 2023 on Financial Sector Development and Strengthening (UU P2SK).