JAKARTA - Asosiasi Fintech Pendanaan Bersama Indonesia (AFPI) estimates that credit disbursed by online loans (pinjol) or fintech Peer-to-Peer Lending (P2P) Lending, will increase to double digits ahead of the Eid al-Fitr or Lebaran 2025.

AFPI Chairman, Entjik S. Djafar, said the increase was in line with the high demand for Lebaran consumptive credit, amid the economic challenges of society.

‘Online loans can be a financial solution, if used responsibly,’ said Djafar, in his official statement, Thursday (27/3) yesterday.

Meanwhile, Head of MFPI's Public Relations Division, Kuseryansyah, said the high need for financing is feared to encourage people to take shortcuts through illegal online lending.

Moreover, said Kuseryansyah, pinjol business actors provide easy conditions for fund disbursement. But on the other hand, the interest burden and service fees are very high.

‘This can make consumers struggle,’ said Kuseryansyah.

During last year's Eid season, the Financial Services Authority (OJK) noted that loans from loan sharks grew 8.9% on a monthly basis, reaching IDR22.76 trillion. Meanwhile, for this year's Eid season, the growth is estimated to reach 24.16% on an annual basis. (KR/LM)