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A look at peer-to-peer lending in Indonesia: The largest market in Southeast Asia

DIGITAL VENTURES December 27, 2018 11:52 AM


Digital Ventures have shared trending stories in the financial sector such as peer-to-peer lending in the macroscopic world view and in China, Asia’s largest market. Today, we move to a market much closer to Thailand with a noteworthy peer-to-peer lending market size that is constantly developing. Some may have heard about the prosperity of the industry in this country. Digital Ventures wish to show our readers the overview and key success factors of peer-to-peer lending in Indonesia.



Indonesia FinTech landscape: A fertile soil for peer-to-peer lending

The first interesting factor regarding peer-to-peer lending in Indonesia is its FinTech landscape. Indonesia has several distinct characteristics that suit the growth of digital lending and alternative financial service.

  • The highest population in the region. Indonesia has the highest population in Southeast Asia at 261 million. A large population also means a larger market for financial services.
  • A large part of the population lacks financial inclusion. A 2014 World Bank report states that Indonesia’s population ranks as the world’s 3rd in terms of lack of financial inclusion with 170 million unbanked Indonesians. Therefore, an alternative service such as peer-to-peer lending is a solution for this large group who needs to borrow for daily spending or as working capital for SMEs.
  • Digital lending is the 2nd largest FinTech in the country. The market size is a core factor driving peer-to-peer lending’s remarkable development. reports an overview of FinTech in Indonesia that digital lending is the second largest and isn’t far behind the largest market which is digital payment. This ranking reflects the competitiveness and awareness to constantly develop platforms which will also support the growth of peer-to-peer lending.
  • The value of peer-to-peer lending in Indonesia sees a rising trend. A statistic website,, reports that the transaction value of peer-to-peer lending, that includes individual and SME clients in Indonesia, is experiencing an annual rising trend. In 2018, the transaction value is 34.2 million USD and in 2023, it is expected to rise to 60.6 million USD or two-folds in 5 years.


Regulations: The mechanism strengthening peer-to-peer lending

Another factor that supports the existence and growth of an Indonesia’s FinTech service such as peer-to-peer lending is the government’s regulations which is beneficial to the development and help prevent problems and errors.

In Indonesia, the dedicated department who monitors peer-to-peer lending is the Finance Service Authority who has the Bahasa Indonesia abbreviation of OJK. It was established in 2011 to monitor financial services in Indonesia and later included peer-to-peer lending matters in December 2016 under the peer-to-peer lending operation framework. The main scope of work is to launch a regulatory sandbox, especially for digital lending. 

Early 2018, OJK announced strict measures that startups and companies are required to acquire a permit from OJK to operate peer-to-peer lending. This was aimed to prevent fraud such as acquiring money from investors without issuing loans. The regulation states that companies need to have at least 200,000 USD of capital to begin operations and not over 150,000 USD can be the loan amount. Moreover, they encouraged users to keep a lookout for companies with no permit and this has led to a closure of several hundreds of peer-to-peer lending platforms.



Noteworthy peer-to-peer lending startups

In 2018, OJK authorized 40 service providers. Peer-to-peer lending in Indonesia is interesting in that its customer bases are clearly defined. Examples are peer-to-peer for farmers or social enterprise. This is a good solution for the country and fits the business landscape. We have listed some startups who rely on such business models and other interesting startups in Indonesia.

  • Koinwork is a leading Indonesian peer-to-peer lending platform which allows investments according to the risk scores for higher returns that fit each investors’ requirement. Borrowers have 3 main packages to choose from namely for education, health, and business cash flow. They have collaborated with universities, hospitals, and clinics to promptly offer services according to the packages.
  • Amartha is a peer-to-peer lending service which began operations in 2010. This is a platform for general investors and banks who provide loans mainly for SME entrepreneurs. They have collaborated with credit bureaus, insurance companies, and assets insurance firms in order to efficiently manage investors’ risks. 
  • Investree is a marketplace which connects investors and borrowers with technologies so that both parties acquire the terms and conditions that best fits their demand. Their strength is the capability to offer a high return to investors and offer borrowers with lower interests when compared to other providers.
  • Aktivaku is another marketplace peer-to-peer lending platform where borrowers’ collateral is accepted. They are partners with ‘Go-Jek’, a ride-hailing unicorn startup in Indonesia.
  • Modalku is a peer-to-peer lending platform which welcomes both retail and institutional investors. Their main clients are SME entrepreneurs.
  • GandengTankan is a social enterprise peer-to-peer lending platform which connects investors and micro-entrepreneurs. Aside from the opportunities for return on investments, the investments will help create jobs and bring income to micro-entrepreneurs who are the foundation of each city.  
  • Tanifund is a peer-to-peer lending platform which specifically targets Indonesia’s agricultural sector. This platform connects investors to provide loans in farmer’s manufacturing projects. Investors have the opportunity to gain profit directly from the sales of farm products.


Although Indonesia’s peer-to-peer lending market isn’t as large as the USA or China, it is worth exploring and rather noteworthy because its economic and social landscape is similar to Thailand and is located in the same region. Digital Ventures will surely share more stories regarding FinTech in our future blogs. Follow us for more updates.

Thank you for the information from,, and