An industry player has praised the Financial Services Authority (OJK) for adjusting the maximum interest rate on consumer fintech online lending platforms (pinjol) − with maximum daily interest at 0.3 percent for tenors under six months and 0.2 percent for tenors over six months − that will take effect on January 1, 2025. 

PT Pembiayaan Digital Indonesia (AdaKami) assessed that this policy will have a significant impact on the risk profile and user verification process, especially on Electronic Know Your Customer (e-KYC).

"The risk profile that we can bear is very dependent on the amount of daily interest. With the interest rate lowered to 0.3 percent, logically the risks that we can accommodate are also increasingly limited," AdaKami Brand Manager, Jonathan Kriss, told the media, on Tuesday, April 22, 2025.

He cited that AdaKami's loan service is unsecured, so the company bears the full risk if the borrower does not repay the loan. The decrease in interest, he said, automatically reduces the "pool" of users that can be served.

"If the interest rate gets smaller, the pool of borrowers that we can accommodate will narrow. Because verification is not free, there are costs for anti-fraud, e-KYC processes, and operations," Jonathan said.

He also highlighted that although OJK opens up opportunities for consumer platforms to switch to the productive sector, the process requires time and a different approach both technically and operationally.

He emphasized that no consumer permits have been revoked by the regulator.

"e-KYC at AdaKami can be completed in 5 minutes if the data is clean, but for productive loans the process is much more complex and time-consuming," he said.

At the end of 2024, the outstanding online loan financing supervised by OJK reached Rp77.07 trillion (US$4.87 billion). This figure increased compared to the previous period (November 2024) which reached Rp75.60 trillion (US$4.78 billion). Overall, the outstanding pinjol, was recorded at Rp77.02 trillion, with a growth of 29.14 percent compared to the previous year.

Jonathan said that the company recorded a total loan disbursement of Rp3.94 trillion (US$249 million) in the first quarter of 2025 to 955,400 active users. In addition, the 90-day Payment Success Rate (TKB90) reached 99.82 percent, indicating high portfolio quality.

In addition, Adakami also emphasized its commitment to maintaining data security and platform integrity. The company's IT and anti-fraud teams revealed that they had succeeded in recovering almost 100 percent of various AI-based fraud modes, including facial manipulation and ID card data forgery.

"We routinely conduct system audits with random sampling to ensure that our systems, including e-KYC technology, remain accurate and reliable," concluded Jonathan.