The Indonesian Financial Service Authority (Otoritas Jasa Keuangan – “OJK”) has issued OJK Regulation No. 40 of 2024 on Information Technology-Based Collective Funding Services (commonly known as peer-to-peer lending – “P2P”) (“OJKR 40/2024”), replacing OJK Regulation No. 10/POJK.05/2022 (“OJKR 10/2022”).
OJKR 40/2024 introduces significant changes to enhance the security and operational quality of the P2P lending industry while fostering growth and innovation. While OJK tightens governance in certain areas to improve protection in P2P business operations, it also relaxes some restrictions from OJKR 10/2022, allowing more opportunities for business collaboration and investment.
Key changes under OJKR 40/2024 include an expanded scope of P2P business activities, foreign ownership regulations, changes in the rules for controlling shareholders, a higher funding limit for productive loans, and updated requirements on employing foreign workers. A detailed comparison between OJKR 10/2022 and OJKR 40/2024 is presented in the table below:
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No. |
Categories | OJKR 10/2022 | OJKR 40/2024 |
|---|---|---|---|
| 1. | Eligible Legal Entity | Must be strictly in the form of a limited liability company (“PT”). | Either PT or cooperatives (koperasi). |
| 2. | Scope of Business Activities | Limited to provision, management, and operation of P2P platform (“Platform Management”). | Eligible P2P companies may, in addition to Platform Management activities, engage in:
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| 3. | Experience Requirement for the Controlling Shareholders (Pemegang Saham Pengendali or “PSP”) | None | Must have at least 2 (two) years of operational history before investing in a P2P platform except for a newly formed PSP resulting from a merger, consolidation, or spin-off. |
| 4. | Funding Limit | Maximum of IDR 2 billion per debtor. | Specific for a productive loan, a maximum of IDR 5 billion per debtor if the P2P company meets 2 criteria:
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| 5. | Foreign Workers | Limited to 3 years, with no extensions. | 2 years, extendable for another 2 years, subject to:
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| 6. | Foreign Shareholding Limitation | Maximum 85% of total issued and paid-up capital, direct or indirect. | A new foreign shareholding limitation will be introduced in the future government regulation (until then, the 85% foreign shareholding limitation in OJKR 10/2022 remains in effect). |
| 7. | Change of Shares Ownership Requirement | Any changes of shares ownership, including by a minority shareholder, must obtain prior approval from OJK. | OJK’s prior approval is required only for changes in the PSP while minority shareholders’ changes only need to be reported to OJK. |
| 8. | Lock-up Period | No change of ownership for 3 (three) years after obtaining their business license if it resulted in:
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The 3 (three) years lock-up period applies only to changes in PSP. |
| 9. | Other New Provisions | Not relevant | New requirements to maintain:
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