The Financial Services Authority (OJK) has acknowledged a growing trend of deliberate loan defaults and fraud in the country’s peer-to-peer (P2P) lending sector -- known as digital lending -- with a number of fintech startups under scrutiny for alleged financial misconduct.

"We continue to take action to eradicate fraud in the digital lending industry. The sector is still plagued by various fraud cases," Agusman, OJK’s Chief Executive Supervisor for Finance Companies, Venture Capital Firms, Microfinance Institutions, and Other Financial Services, told a press conference on Monday, August 4, 2025.

To mitigate these risks, OJK has launched several strategic measures:

1. Strengthened supervision, including onsite inspections and spot checks on borrowers;

2. Enhanced consumer protection and enforcement of administrative sanctions, including business license revocations;

3. Post-license revocation oversight to ensure orderly liquidation;

4. Reassessment of parties involved in misconduct, through restructuring mechanisms and fit-and-proper tests;

5. Law enforcement collaboration to investigate suspected criminal offenses;

6. Regulatory tightening to prevent future recurrence.

Agusman emphasized that sound governance and investor caution are vital to ensure long-term sustainability of Indonesia's fintech lending ecosystem.

Key fraud cases

TaniFund, a subsidiary of agri-tech platform TaniHub, is being investigated by the South Jakarta Prosecutors' Office for suspected corruption and money laundering between 2019 and 2023. Former executives allegedly manipulated data to secure funding from investors like MDI Ventures and BRI Ventures, diverting funds for personal use.

As of March 2023, TaniFund recorded a Non-Performing Loan (NPL) rate of 63.93 percent (TWP90), and failed to repay lenders. Several investors filed lawsuits totaling Rp471.2 million in early 2024. The platform’s license was officially revoked on May 3, 2024, with a mandate to hold a General Meeting of Shareholders to initiate liquidation.

OJK is also coordinating with law enforcement over default cases involving Akseleran and Koin P2P, where borrowers allegedly fled with lenders’ money.

eFishery, which operates the Kabayan (Buy Now, Pay Later) program for fish farmers, is facing pressure due to high default rates and an investigation into financial data inflation. The company is reportedly absorbing debts from borrowers who have failed to repay loans for fish feed purchased through its platform.

Crowde has been reported by J Trust Bank to the Jakarta Police for alleged embezzlement tied to a credit facility. Filed on February 11, 2025, the report claims that Crowde submitted fake borrower identities, using farmers who were unaware of any loans made in their name.

According to DealStreetAsia, Crowde is suspected of misusing nearly Rp100 billion of capital loans, allegedly channeling funds into fake agricultural projects and shell businesses. Of the Rp1.3 trillion disbursed from 2021 to 2024, only Rp500 billion is believed to have supported legitimate farming activities. The remainder—around Rp800 billion—is thought to have been distributed through fictitious transactions.

Major funding sources for these loans included Bank Mandiri (Rp300–400 billion), Bank BJB (around Rp200 billion), J Trust Bank, and several regional banks.

Crowde’s legal representatives have yet to respond to media inquiries. Meanwhile, insiders told Katadata.co.id that investor concerns are mounting, as suspicions of fraudulent loan disbursement grow. A new CEO reportedly served just four months, while layoffs have affected staff.

Insiders also suggest the presence of “agricultural loan mafia” — actors who intentionally default on digital loans.

Another high-profile case involves Investree, whose operational license was revoked by OJK on October 21, 2024, for failing to meet minimum equity and other regulatory requirements. Former CEO Adrian Gunadi is now a fugitive, named in an Interpol red notice for alleged financial crimes.

Wider industry concerns

The Indonesian Joint Funding Fintech Association (AFPI) also raised alarm over social media groups promoting intentional loan defaults. These online communities encourage users to borrow from digital lending platforms with no intention of repayment.

OJK warns that such behavior, if left unchecked, poses a systemic risk to the digital lending industry and threatens investor confidence. Strengthening regulation, accountability, and public awareness remain top priorities.