Indonesia's Online Loans Reach Rp106.48 Trillion as Overdue Debt Ratio Passes 5%

More credit, slower growth and rising repayment trouble

Indonesia's outstanding online loans reached Rp106.48 trillion in September 2026, while the share of financing with payments more than 90 days overdue climbed to 5.36%, above the 5% threshold cited by the Financial Services Authority, known as OJK. Nine of the country's 94 online lending providers also remained below the minimum equity requirement of Rp12.5 billion.

Agusman, OJK's chief executive supervising financing institutions, venture capital, microfinance and other financial services, presented the figures on November 5 at an online briefing on the regulator's October board meeting. Outstanding financing grew 17.02% from September 2025, with financing for micro, small and medium enterprises increasing 12.49%.

September's total nevertheless fell by Rp460 billion from August's Rp106.94 trillion. Annual growth also slowed from 22.07% in August. The industry therefore entered the final quarter with a smaller outstanding balance than a month earlier and a larger proportion of seriously overdue financing.

OJK chair Friderica Widyasari Dewi had given a slightly lower September balance, Rp106.46 trillion, at the Financial System Stability Committee briefing in Jakarta on November 3. Both presentations put annual growth at 17.02% and the overdue financing ratio at 5.36%.

Outstanding financing means money borrowers still owe at a particular date. It differs from the total value of loans issued over a month or year, because repayments reduce the balance while new borrowing adds to it. September's figures show an industry still larger than a year earlier, even as its immediate pace of expansion weakened.

For borrowers, the central issue is whether repayments fit their income. For people supplying money through lending platforms, the rising overdue ratio means a greater share of financing is taking longer to come back.

What the 5.36% overdue ratio means

OJK measures serious repayment trouble through TWP90, an Indonesian abbreviation for the rate of default beyond 90 days. In simple terms, it tracks the proportion of outstanding financing whose payment obligations are more than 90 days late.

September's 5.36% reading was 0.36 percentage points above the 5% threshold. Applied to Rp106.48 trillion in outstanding financing, that ratio suggests approximately Rp5.71 trillion was associated with obligations overdue beyond 90 days. This is a calculation from the published total and ratio.

The ratio rose from 2.82% in September 2025, an increase of 2.54 percentage points in a year. Put another way, the seriously overdue share grew to about 1.9 times its level a year earlier. Financing expanded, but repayment trouble expanded faster as a proportion of the balance.

The monthly figures also show deterioration through the middle of 2026: 4.26% in June, 4.32% in July and 4.73% in August, followed by 5.36% in September. The increase from August to September was 0.63 percentage points, larger than the increases in either of the preceding two months.

Two inconsistent August comparisons also circulated: one placed August 2026 at 5.36%, while another dated the 4.73% reading to August 2025. The repeated August 2026 figure of 4.73% provides the basis for the monthly comparison here.

How the numbers developed

Indonesia's repayment difficulties were visible well before September. February's TWP90 reading was already 4.54%, compared with 2.78% in February 2025. The ratio subsequently fell to 4.26% in June before rising for three consecutive months.

The main dates bring together the lending trend and the regulator's latest disclosures:

• February 2026: Outstanding online financing reached Rp100.69 trillion, with TWP90 at 4.54%.
• June and July 2026: TWP90 stood at 4.26% and 4.32%, respectively.
• August 2026: Outstanding financing reached Rp106.94 trillion, growing 22.07% annually; TWP90 was 4.73%.
• September 2026: Outstanding financing fell to Rp106.48 trillion, annual growth slowed to 17.02% and TWP90 rose to 5.36%.
• November 3 and 5, 2026: Friderica and Agusman presented the September figures at separate financial sector briefings.

September's outstanding balance was Rp5.79 trillion higher than February's, an increase of about 5.75% across those seven months. Over the same interval, TWP90 increased by 0.82 percentage points. The industry was carrying both more financing and a higher proportion of seriously delayed payments.

Small businesses gain financing, but growth slows

Financing for micro, small and medium enterprises, known in Indonesia as UMKM, grew 12.49% from a year earlier. Agusman said the expansion reflected the role of digital lending in widening access to funding for the public and productive businesses.

These platforms, formally called information technology based joint funding services, or LPBBTI, connect people or organisations seeking financing with those supplying funds. They are also commonly called peer to peer lending platforms, pinjol or pindar.

Small business financing grew 4.53 percentage points more slowly than the industry's 17.02% annual increase. Agusman's presentation did not give the rupiah value of financing to those businesses or their share of the industry's total balance.

August and September also illustrate why annual growth and monthly movement need to be read together. September's balance was 17.02% larger than a year earlier, yet approximately 0.43% smaller than August's. Borrowing can remain substantial while expansion loses speed.

OJK's stated task is to preserve access to financing while improving repayment quality. For a small enterprise using borrowed money to cover business expenses, access matters. So does a repayment schedule that the business can meet without repeatedly taking on new debt.

Nine platforms remain below the equity minimum

Agusman said 85 of 94 LPBBTI providers, or 90.43%, had met the minimum equity requirement of Rp12.5 billion. The remaining nine represented about 9.57% of providers.

Equity is the value left in a company after its liabilities are deducted from its assets. It gives the operator a financial base from which to run its business and absorb losses. OJK is monitoring compliance alongside corporate governance, risk management and consumer protection.

Agusman, speaking about OJK's approach to industry growth, said in translation:

OJK consistently encourages the growth of a healthy, inclusive and sustainable LPBBTI industry, while continuing to prioritise financing quality, stronger risk management and consumer protection.

OJK also disclosed capital compliance figures for financing companies, a separate category from online lending platforms. Of 144 financing companies, 138, or 95.83%, had met the minimum core capital requirement of Rp100 billion. Six remained below it.

Compliance among financing companies was therefore 5.40 percentage points higher than among LPBBTI providers. Each group faces its own capital requirement: Rp100 billion in minimum core capital for financing companies and Rp12.5 billion in minimum equity for online lending operators.

Sanctions accompany closer supervision

OJK imposed administrative sanctions during October on 11 online lending providers, 11 financing companies and eight venture capital companies. Agusman linked those actions to violations of OJK regulations and findings from supervision or follow-up examinations.

The disclosures did not identify the affected companies, specify each sanction or give a deadline for the nine online lending providers still below the equity minimum. OJK said it would continue monitoring capital compliance and strengthening governance, risk management and consumer protection.

Friderica's November 3 briefing also provided a comparison with the broader financing company industry. Its outstanding financing stood at Rp513.34 trillion, about 4.82 times the September online lending balance cited by Agusman.

Financing companies had a gross nonperforming financing ratio of 2.98% and a net ratio of 0.81%. Gross measures problem financing before adjustments such as provisions set aside against losses; net measures reflect those adjustments. Their gearing ratio, a measure of borrowing relative to capital, was 2.05 times against a maximum of 10 times.

Online lending's TWP90 and financing companies' nonperforming financing ratios use different measures. Each provides a view of repayment quality within its own industry. OJK's figures put the immediate online lending concern in concrete terms: an overdue ratio above 5%, alongside outstanding capital compliance gaps.

Borrowers face the cost of repeated borrowing

Indonesia's earlier borrowing struggles showed how digital credit can grow beyond a worker's ability to repay. Indie, a healthcare worker in Jakarta, accumulated Rp50 million in debt, about ten times her monthly salary, after buying clothing on instalments and borrowing through several lending applications.

Mawar, an administrative worker earning Rp2.5 million a month, faced a monthly payment of Rp4 million on one loan alone. By January 2026, she owed nearly Rp30 million across four lenders. Her experience illustrates how payments across several services can exceed income even when borrowing begins with relatively small purchases.

The Financial System Stability Committee connected wider access through artificial intelligence and machine learning with a need for stronger financial literacy. These technologies can process information and support lending decisions quickly. Borrowers still need to understand interest, fees and the combined payments due across all their debts.

OJK's response combines closer scrutiny of repayment quality with capital requirements and enforcement. September's figures make the balance difficult: online financing continues to reach more borrowers than a year earlier, while a rising share of existing obligations is falling seriously behind.

Key Points

• Outstanding online financing reached Rp106.48 trillion in September 2026, up 17.02% annually but down Rp460 billion from August.
• TWP90 rose to 5.36%, above the 5% threshold and up from 2.82% in September 2025.
• Financing for micro, small and medium enterprises grew 12.49% annually.
• Nine of 94 online lending providers remained below the Rp12.5 billion minimum equity requirement.
• OJK sanctioned 11 online lending providers during October and pledged continued scrutiny of capital, governance and repayment risk.