Shariah-compliant P2P lending is the ‘Wild West’ in Indonesia
As China drives Indonesia’s e-payments players to consolidate or exit, P2P lending start-ups get competitive, digging out footholds in Shariah compliance
Since Indonesia’s Financial Services Authority (OJK) published new rules for the nation’s fintech sector in December 2016, entrepreneurs and investors have moved quickly to carve up the market. Fintech stakeholders in the world’s largest Muslim-majority economy have scarcely been able to discuss their plans for the next 18 months without incidentally bringing up peer-to-peer (P2P) lending.
OJK has stipulated that P2P lending start-ups must get themselves registered, have $200,000 in capital before they can be approved for an operating licenses, and cap loan values at $150,000. For now, this amount should tide users over while the government observes the space’s progress and issues updated rules in the future.
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Leighton Cosseboom