New OJK Regulations Come into Effect This Year

FINTECH - JAKARTA. The Financial Services Authority (OJK) has introduced a number of new regulations in SEOJK No.19/SEOJK.06/2023 regarding the Implementation of Joint Funding Services Based on Information Technology (LPBBTI) which will take effect from January 1, 2024.

The SEOJK includes various rules for fintech peer-to-peer (P2P) lending, including interest rate reduction, debt collection, repayment capacity, and limiting borrowing to only three platforms.

In response to these changes, several fintech P2P lending companies have stated that they have made adjustments in accordance with the new regulations. One of these is the fintech P2P lending company PT Sahabat Mikro Fintek (SAMIR).

Regarding the interest rate reduction, SAMIR's Public and Government Relation, Balqis, said they will first analyze the financial impact.

"After that, we will re-analyze the risk to borrowers and adjust interest rates based on their risk profile. We will also diversify our loan portfolio to reduce risk and maintain business sustainability," she revealed to Kontan.co.id, Sunday (31/12).

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Regarding the implementation of the new collection regulations, Balqis said SAMIR will start by updating collection procedures, training staff, implementing technology that facilitates the collection process, and evaluating collection vendors to ensure compliance with SEOJK Number 19.

In accordance with the new rules, updates to the risk assessment model, she said they will look at the feasibility and ability of potential borrowers to meet payment obligations, namely character and repayment capacity, with a more cautious approach to borrowers with low repayment capacity.

In addition, regarding borrowers only being allowed to borrow on three platforms, Balqis said the positive impact of this regulation for her company is the potential for improved borrower quality and risk control.

"With the limitation of the number of platforms, the company can focus more on analyzing borrower profiles and managing the loan portfolio more effectively. This can certainly reduce credit risk and strengthen lender trust," she said to Kontan.co.id, Thursday (28/12).

Balqis mentioned another impact, namely the potential for limited access to funding for borrowers. In addition, she said if not managed well, the regulation could also affect the company's performance by reducing funding volume and potentially reducing profits.

To implement these new policies, Balqis said the company will focus more on diversifying products and services that meet market needs. In addition, she said, SAMIR will also strengthen cooperation with other financial institutions as a strategy to face limited access to funding.

Regarding the fulfillment of IDR 7.5 billion in capital by the end of this year, SAMIR believes this will be achieved.

"Of course, involving the company's financial analysis and cooperation with stakeholders, including shareholders and other stakeholders," she said.

Balqis explained that since its establishment until the end of November 2023, SAMIR has disbursed funding of IDR 647.62 billion.