JAKARTA – The distribution of credit through fintech Peer-to-Peer (P2P) lending or online loans surged by 29.94% year-on-year (yoy) to IDR 78.50 trillion in January 2025, surpassing the growth of credit from banks, finance companies, and venture capital firms.

Outstanding bank credit ranked first in January 2025, with total credit distribution of IDR 7,782 trillion, according to data from the Financial Services Authority (OJK). However, its growth during this period was only 10.27% yoy.

Meanwhile, outstanding credit from finance companies grew by 6.04% yoy for the same period, reaching IDR 504.33 trillion. In contrast, outstanding venture capital credit declined by 3.6% yoy to IDR 15.81 trillion.

Although P2P lending’s outstanding credit growth was the fastest, the risk of loan defaults remains relatively high, with the 90-day delinquency rate (TWP 90) at 2.52%. However, this figure slightly improved from the previous month, when it stood at 2.60%.

In comparison, the risk of non-performing loans in the banking sector remained lower, with a gross NPL (Non-Performing Loan) rate of 2.18% in January 2025. Meanwhile, the gross NPF (Non-Performing Finance) rate for finance companies was at 2.96%. (KR/ZH)