Indonesia’s antitrust regulator has launched preliminary tribunal proceedings against 97 online lending startups over suspected cartel practices involving daily interest rate caps, Indonesian news site Katadata reported.
The Indonesia Competition Commission (KPPU) said the investigation revealed indications of a coordinated agreement among peer-to-peer (P2P) lenders to set high interest rates through an exclusive arrangement within the Indonesian Joint Funding Fintech Association (AFPI).
The watchdog believes the alleged actions may constitute a violation of Article 5 of the country’s 1999 Antimonopoly Law.
According to KPPU Chairperson Fanshurullah Asa, fintech lenders collectively imposed a flat daily interest rate cap of 0.8% on loans between 2020 and 2021, which was later reduced to 0.4%.
The interest ceiling, which includes associated fees, was based on the actual loan amounts disbursed to borrowers. KPPU alleges this uniformity was not a result of market dynamics but of collusive practices among AFPI members.
While all 97 licensed online lenders as of March 2025 were listed as respondents, the commission did not disclose whether the figure included firms that operated during the 2020–2023 period but had since exited the market.
KPPU’s investigation also revealed a concentrated market structure, with a few dominant players holding significant market shares.
As of April 2023, KreditPintar held a 13% share, followed by Asetku (11%), Modalku (9%), KrediFazz (7%), EasyCash (6%), and AdaKami (5%). Many of these platforms reportedly have ties to major e-commerce firms, further consolidating their influence.
The commission’s April 25 decision to escalate the case to a formal Preliminary Examination Tribunal allows the watchdog to validate its findings and collect further evidence.
If the allegations are confirmed, companies could face administrative fines of up to 50% of profits gained from the violations or 10% of revenue earned during the implicated period.
KPPU said the move is part of a broader effort to safeguard fair competition in Indonesia’s digital finance ecosystem.
With 1.38 million active lenders, 125.5 million registered borrower accounts, and cumulative disbursed loans reaching IDR 829.18 trillion ($52.3 billion) by mid-2023, the online lending industry plays a critical role in financial inclusion.
Indonesia’s unmet credit demand—estimated by the World Bank at IDR 1,650 trillion in 2024—has contributed to the rapid expansion of fintech lending.
However, the KPPU warned that anti-competitive behavior risks undermining consumer protection and market efficiency.
