OJK Inaugurates the Presence of AFPI, Special Association for Fintech Lending

OJK inaugurated the Indonesian Joint Funding Fintech Association (AFPI). Associations are presented specifically to deal with issues surrounding which is predicted to grow as the number of players continues to grow. This association will go hand in hand with the Indonesian Fintech Association (AFTECH) and OJK.

"Control the industry lending This is very difficult because it has to protect two types of consumers, Actioncalendar and borrowers. We see this industry will grow and the problems will also be big. For this reason, we do not want this industry to end up like in China, we want this new industry to grow healthy, strong, and contribute to financial inclusion," explained OJK DP3F Director, Hendrikus Passagi, in Fintech Days in Bali, Friday (26/10).

According to Hendrikus, in its work program, AFPI will focus on issues around p2p loans which has not been taken care of while still in the shade AFTECH. The reason is, the AFTECH membership is not only filled by players only, but there are also fintech others, such as payment aggregator, e-commerce and others. All of them operate under different regulatory umbrellas.

"In fact, in our imagination, AFTECH will become a pillar for fintech in general, become an umbrella for all associations fintech which will be more specific below."

For regulators, the presence of this specific association is certainly very useful in overseeing the industry lending. OJK wants the industry to move swiftly, in line with the startup spirit.

In practice, regulators oversee the industry by utilizing four layers. First, from the public to monitor and report if there is something different from the socialization of POJK 77/2016. Second, internal control of the organizers for implementation in accordance with GCG. Third, supervision from associations that participate in guarding the industry. OJK is in the last layer.

"So the OJK is in the last tier because we want the industry it can move more agile."

Based on the latest data from OJK, there are 73 organizers who already have a certificate of registration, two of whom are moving in lending sharia. Its domicile is centered in Greater Jakarta, there are 71 companies, one company is in Bandung.

In OJK internal, there are 47 organizers who are still in the registration process, 59 organizers have their applications returned to be completed again, and 38 organizers are interested in registering. So that in total there are 217 additional organizers who will enter as members of AFPI and AFTECH.

Until September 2018, industry lending has disbursed Rp13,83 trillion. Amount Actioncalendar amounted to 161.297 entities and borrowers 2,3 million entities. At the same time, the NPL ratio reached 1,2%, an increase from the position at the end of 2017 of 0,99%.

AFPI work program

Hendrikus continued that in his work program AFPI has about eight compartments, all of which support the running of the industry to be stronger. Some of these compartments include dealing with issues of multipurpose, productive, fintech support, infrastructure, and sharia.

Each of them deals with specific issues that have never been done while under AFTECH, such as digitalsignature, tax, artificial intelligence, code of ethics, and others.

"Interestingly, there is a big issue in funding, there are conventional and sharia forms. Of the total 73 organizers who have received registration marks, only two are sharia. This may be the reason why lending sharia is less developed, because AFTECH is less focused on it. We hope that AFPI can start it."

AFPI is chaired by Adrian A Gunadi (Investree) and Sunu Widyatmoko (Dompet Kilat) as vice chairman. Some activist names also took part in handling AFPI, including Cally Alexandra (Crowdo), Sendy Filemon (Futureready), Lutfi Adhiansyah (Ammana), and others.