Indonesia Hopes P2P Lenders Can Self Regulate

Indonesia’s p2p lending market has had a number of issues including very high interest rates, fraud, aggressive debt collection and more; the regulators have endorsed a light touch self regulatory environment; there is concern that this approach will not police the industry enough and the market will repeat a lot of the same mistakes seen in China; the market overall has grown to more than $2.3bn with 7 million borrowers since first being approved in December 2016; in China the big issue was with investors who lost their savings due to fraudulent platforms, in Indonesia borrowers are being pressured; debt levels are rising and reports are that bad debts could be twice as large are currently reported; the industry hopes that media coverage, more bank participation and some of the top names can help to better self regulate before it is too late. Source.

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