Published on 06/10/2023 at 14:30 GMT+7 Reading time
The Business Competition Supervisory Commission (KPPU) has initiated an investigation into allegations interest rates fixing practicing on loans provided by online lenders to borrowers.
The interest rate regulation is purportedly conducted by the Indonesian Joint Funding Fintech Association (AFPI).
Gopprera Panggabean, the Director of Investigation at the KPPU Secretariat, mentioned that the KPPU is swiftly establishing a task force to investigate the matter.
Gopprera explained that this initial inquiry originates from a study undertaken by the KPPU concerning the online lending sector, based information from the business community. From this investigation, the KPPU identified a suspiciously maligned regulation by AFPI regarding the determination of loan components for consumers.
In particular, this involves the establishment of a fixed interest rate of 0.8 percent per day on the actual borrowed amount by the consumer or borrower. "The KPPU found that the AFPI's determination has been followed by all registered AFPI members," stated Gopprera.
For reference, AFPI's official website indicates that there are 89 members engaged in fintech lending or peer-to-peer lending.
The KPPU believes that AFPI's setting of online loan interest rates holds the potential to contradict Law No. 5 of 1999 concerning the Prohibition of Monopoly Practices and Unfair Business Competition.
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