2025 deadline for P2P Organizer under the New OJK Regulation
Background
The Indonesian Financial Services Authority (OJK) has established certain deadlines for peer-to-peer lending organizer (P2P Organizer) to implement requirements related to IT-based peer-to-peer lending service (P2P Platform) outlined under the OJK Regulation No. 40 of 2024 concerning Information Technology-Based Co-Funding Services (the New Regulation).
This New Regulation was issued on 24 December 2024 (Effective Date), intended to replace the previous regulation, OJK Regulation No. 10/POJK.05/2022 (the Old Regulation). The New Regulation aims to implement the mandate of Law No. 4 of 2023 concerning the Development and Strengthening of the Financial Sector, while also strengthening the P2P regulatory framework.
This client update summarizes the requirements that P2P Organizer must comply with, their deadlines, and its potential implications of non-compliance.
Deadline for P2P Organizer
We have summarized below the deadlines that P2P Organizer must comply with, highlighting both immediate obligations and long-term adjustments required to align with the new regulatory framework.
| Timeline | Reference | Obligation |
Sanction |
|
No later than 3 months after the Effective Date (i.e due on March 2025)
|
Article 142 (5), (6), (7), Article 159 (1) and Article 226 | The obligations are:
1. P2P Organizer to include warnings regarding the risks of lending and borrowing activities on the P2P Organizer’s website and/or its online app (if the P2P has an online app).
2. P2P Organizer to ensure that the lender understand all the risk before providing their funding. Note: this obligation can be achieved by using clear wording when publishing warnings on the P2P Organizer website or online app.
These obligations also apply to any P2P Organizer that holds a P2P license before the Effective Date but has not yet complied, with compliance expected by no later than March 2025. |
Non-compliance to this requirement will result in administrative sanctions from OJK, ranging from:
(a) written warning;
(b) partial or complete suspension of business activities;
(c) restrictions on implementing certain business activities;
(d) reduction in risk level assessment results;
(e) cancellation of OJK’s approval;
(f) prohibition on becoming a controlling shareholder, member of Board of Directors, member of Board of Commissioners, or member of Sharia Supervisory Board; and/or
(g) administrative fines (for at most Rp50 million).
|
| No later than 6 months after the Effective Date (i.e due on June 2025)
|
Article 151 (1), Article 152 (1), (2), (3) and (4), Article 159 (1) and Article 229 | The obligations are as follows:
1. The P2P Organizer must formulate credit scoring guidelines, which are to be established by the Board of Directors.
2. The P2P Organizer is responsible for the credit scoring mechanism.
3. The P2P Organizer must evaluate the effectiveness of the credit scoring process at least every 3 months.
4. The P2P Organizer must provide credit scoring guideline documents to OJK for verification and/or validation.
These obligations also apply to any P2P Organizer that holds a P2P license before the Effective Date but has not yet complied, with compliance expected by no later than 6 months after the Effective Date.
|
Same as the above |
| Article 199 (1), Article 201 (1), Article 233 | The P2P Organizer must formulate guidelines for the implementation of the General Meeting of Lenders and ensure that the meeting is conducted in accordance with these guidelines.
Note: General Meeting of Lenders is convened to decide on matters relating to amendment of financing agreement such as, provisions on restructuring of funding, write-off of funding, and write-off of funding collection.
These obligations also apply to any P2P Organizer that holds a P2P license before the Effective Date but has not yet complied, with compliance expected by no later than 6 months after the Effective Date.
|
Same as the above | |
| By 4 July 2025 | Article 169 (1) and (2) and Article 178 | 1. The P2P Organizer must at all times have a minimum equity of at least Rp12,5 billion.
2. P2P Organizers that hold a P2P license prior to the Effective Date and have not yet met this requirement may comply with the minimum equity requirement gradually:
(a) at least Rp7,5 billion after the Effective Date; and
(b) following that, at least Rp12,5 billion on 4 July 2025.
|
Same as the above |
| No later than 1 year after the Effective Date (i.e effective on December 2025)
|
Article 155 (1), (2), (3) and (4), Article 159, and Article 230 | 1. The P2P Organizer is prohibited to make a direct capital participation except to:
(a) company engaged in financial services sector; and/or
(b) company engaged in P2P Platform business activity.
2. Direct capital participation in the above companies, can not be more than 20% of the total equity of the P2P Organizer.
3. Direct capital participation in any of the above companies that belong to the same group cannot exceed 10% of the total equity of the P2P Organizer, except for direct capital participation in a sharia P2P company.
These obligations also apply to any P2P Organizer that holds a P2P license before the Effective Date but has not yet complied, with compliance expected by no later than 1 year after the Effective Date.
|
Same as the above |
| Article 167 (1), Article 178, and Article 231 | P2P Organizer is required to meet the health level of at least a composite rating of 3.
The health level of a P2P Organizer is determined by its capital, funding, profitability, liquidity and management health.
|
Same as the above | |
| Article 170, Article 178, and Article 231 (2) | P2P Organizer must maintain equity ratio to paid-up capital at minimum 50%.
The above obligation also applies to any P2P Organizer that holds a P2P license before the Effective Date but has not yet complied, with compliance expected by no later than 1 year after the Effective Date.
|
Same as the above | |
| Article 172 (2), Article 178, and Article 231 (2) | P2P Organizer must maintain a maximum non-performing funding ratio of 5%.
The above obligation also applies to any P2P Organizer that holds a P2P license before the Effective Date but has not yet complied, with compliance expected by no later than 1 year after the Effective Date.
|
Same as the above | |
| Article 174 (2), Article 178, and Article 231 (2) | P2P Organizer must maintain a liquidity ratio of at least 120%, calculated by comparing current assets to current liabilities.
The above obligation also applies to any P2P Organizer that holds a P2P license before the Effective Date but has not yet complied, with compliance expected by no later than 1 year after the Effective Date. |
Same as the above |
Remarks
Compliance with the New Regulation set by the OJK is crucial for P2P Organizer. Meeting these deadlines is not only a legal obligation but also essential for maintaining operational integrity. By adhering to these requirements, P2P Organizers can ensure sustainable growth and contribute positively to the evolving landscape of financial technology in Indonesia.
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For further guidance or to understand how these changes may impact your arbitration agreements or ongoing cases, please contact us at info@tnklaw.id or (021) – 2528636.
| Tamba and Kumara Law Offices is a full-service Indonesian corporate and commercial law firm with high-quality legal services with a broad range of domestic and international clients. |
