Obtaining OJK’s Permit, Finplus is Ready to Prosper MSMEs

After obtaining a permit from the Financial Services Authority (OJK), the Finplus financial technology (fintech) based application is ready to make major innovations in the financial services sector. President Director of Finplus, Andrian Jahjamalik, said that his party was grateful to be able to obtain OJK’s permission to develop its business in the online financial services sector.

“We have obtained permission from OJK as of January 8, 2021. We are hereby committed to advancing and prospering micro, small and medium enterprises (MSMEs) in Indonesia through our platform,” said Andrian in his official statement, Thursday (21/1/2021).

He revealed that OJK issued a license in a copy of the decision of the OJK Board of Commissioners Member No; KEP-3/D.05/2021 dated January 6, 2021, concerning the granting of business licenses for companies providing information technology-based lending and borrowing services to PT Rezeki Bersama Teknologi.

“The copy of this decision is an important thing for our company to continue to contribute to the online financial services sector. The presence of Finplus is expected to help small and medium entrepreneurs to improve the welfare of the community,” Andrian added.

Startup Finplus Founded in 2018

For information, Finplus is a technology-based lending and borrowing application from PT Rezeki Bersama Teknologi which has been established since 2018 and claims to have helped more than 70,000 users.

Executive Director of the Indonesian Joint Funding Fintech Association (AFPI) Kuseryansyah welcomed Finplus as a new AFPI member who received permission from OJK. This indicates that more and more members have complied with OJK regulations and associations in order to maintain industry credibility.

It is hoped that it can strengthen the industry, especially in the midst of the COVID-19 pandemic to show the consistency of the fintech funding industry to play an active role in channeling loans to underserved and underbanked people, including MSMEs.

Thus now 41 members of the AFPI are licensed by the OJK, it is hoped that other members who are still registered will immediately process their licenses at the OJK. “AFPI will continue to assist and encourage members to immediately process permits,” said Kusersyansyah.

Until now, Finplus has distributed more than IDR 140 billion, which is spread across more than 1,000 sub-districts in Indonesia with a 100 percent success rate calculation (TKB). This year, Finplus projects an increase in loan disbursement of more than 198 percent with an emphasis on increasing the MSME sector, especially outside Java.

OJK Arranges Loan Restructuring in Fintech to Reduce Bad Credit

The Financial Services Authority (OJK) gives permission to finance technology companies (fintech lending) to restructure loans. This is part of efforts to mitigate the risk of bad credit during the corona pandemic. Previously, the OJK only regulated the restructuring of loans from financial institutions such as banks to multi-finance companies, during the Covid-19 pandemic.

Then, the authorities issued regulations regarding countercyclical policies on the impact of the spread of coronavirus disease 2019 for non-bank financial service institutions. In the regulation, OJK added technology-based financing institutions or fintech lending.

Head of the OJK 2B Non-Bank Financial Industry Supervision Department (IKNB) Bambang W Budiawan said the regulation allows fintech lending to restructure loans, not only for borrowers, but also for operators. One of the goals is to reduce the rate of bad credit.

“With the restructuring, bad loans can be reduced and will continue to increase consumer confidence in fintech lending operators,” Bambang said, Wednesday (20/1). The regulation also makes restructuring by fintech lenders, in principle, the same as financial institutions. “This restructuring provides relief to debtors to repay loans,” he said. However, there is an additional mechanism that must be carried out by fintech lenders when providing restructuring. This is because fintech lending only functions as an intermediary platform, not a lender. As a result, the organizer does not have the authority to provide restructuring, unless there is a power of attorney from the lender.