Indonesia’s Financial Services Authority (OJK) has officially revoked the business license of peer-to-peer (P2P) lending platform PT Investree Radhika Jaya (Investree), citing the company’s failure to comply with minimum equity requirements and other regulatory standards.
The decision marks a significant crackdown by OJK on financial institutions that fail to adhere to established regulations.
Investree, which has been a key player in Indonesia’s burgeoning P2P lending sector, struggled to meet the regulatory mandates despite previous warnings and imposed activity restrictions by the regulator, Business News Asia reported.
In October 2023, the company announced raising about $231 million in its Series D funding round anchored by Qatar’s JTA International Holdings with participation from SBI Holding.
OJK’s intervention follows a period of operational difficulties and declining performance that adversely affected Investree’s service delivery.
The authority had earlier issued multiple warnings to Investree, urging the company to rectify its equity deficiencies, secure additional investments, and enhance its overall performance.
These measures, however, did not yield the necessary improvements, leading to the eventual revocation of the business license.
In addition to the license suspension, Investree faces stringent restrictions on transferring or concealing company assets, with exceptions only for fulfilling legal obligations.
The company is also mandated to address employee rights in accordance with prevailing employment laws.
Furthermore, Investree is required to convene a general meeting of shareholders within 30 days to establish a liquidation team tasked with dissolving the company.
OJK has escalated the matter by taking legal action against key individuals within Investree, including Adrian Asharyanto Gunadi. Gunadi is now prohibited from holding any significant roles in financial institutions, according to local reports
Investigations have revealed allegations that Gunadi diverted funds from Investree to his personal accounts and misused his position to secure guarantees for a personal business venture.
Asset tracing and potential legal proceedings are currently underway as part of OJK’s efforts to recover misappropriated funds and safeguard Investree’s customers.
The revocation of Investree’s license effectively halts all of its business operations. The company must now focus on settling its obligations to both employees and customers while facilitating the orderly dissolution process.
Customers affected by Investree’s operational challenges are advised to contact the company directly for assistance with outstanding issues.
Founded in 2015 in Jakarta, Investree entered the market aiming to provide digital financial solutions to MSMEs who are largely underbanked and previously faced difficulties securing loans without collaterals from traditional financial institutions.