TEMPO.CO, Jakarta - Indonesia’s Financial Services Authority (OJK) said non-performing loans in the country’s online lending industry were dominated by borrowers aged 19 to 34 as of March 2026, highlighting rising credit risks among younger consumers.
Financial Services Authority official Agusman said the age group accounted for 48.65 percent of problematic loans in the peer-to-peer lending sector. The industry’s non-performing loan (NPL) ratio stood at 4.52 percent on an annual basis in March 2026.
“This aligns with the increasing use of online loans among the productive-age population, resulting in relatively higher risk exposure and requiring stronger assessments of repayment capacity,” Agusman said in a written statement on Sunday, May 10, 2026.
He added that bad loans were largely concentrated in the consumptive sector, where repayment capacity is highly dependent on personal income and cash flow. As a result, borrowers in the sector are more vulnerable to financial pressure and repayment difficulties.
According to OJK data, outstanding financing in Indonesia’s online lending industry grew 26.25 percent year-on-year to Rp101.03 trillion (US$6.2 billion) in March 2026. Agusman also revealed that 16 online lending providers recorded NPL ratios above 5 percent.
Despite the elevated figures, the companies are not required to immediately halt lending activities. However, Agusman stressed that online lending platforms must strengthen prudential principles, including improving loan disbursement quality and enhancing risk management practices.
OJK has also urged lending providers to tighten borrower screening and strengthen repayment assessments, improve credit-scoring systems, and increase the effectiveness of debt collection while continuing to uphold consumer protection standards.
“OJK projects that NPL ratios can still be maintained within manageable limits through stronger risk management, good governance, and the consistent implementation of prudential principles by lending providers,” Agusman said.
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