Therefore, they asked the Financial Services Authority (OJK) to relax the rules. The rules referred to OJK Regulation (POJK) Number 77 of 2016 concerning financial technology-based money loans.
Under this rule, financial technology finance companies (fintech lending) may only distribute loans of up to Rp 2 billion.
“For example, from the previous limit of IDR 2 billion to IDR 3 billion or IDR 4 billion,” Chairman of the Public Relations and Institution of AFPI Tumbur Pardede told Katadata.co.id, Thursday (3/19).
In addition to the improved loan ceiling, AFPI wants the financing tenor to be extended. The request for relaxation will be submitted to the FSA this week.
Relaxation is needed because of the demand for loans from MSMEs increases. “There’s the increasing of borrowers’ needs. MSMEs need emergency funds. They practice work from home, their productivity decreases. They have to endure the next three months,” he said.
Only, Tumbur did not specify the magnitude of the increase or the MSME sector that applied for the loan. He explained that the increase occurred in the productive sector. While loans are consumptive, such as buying mobile phones and others, tend to decrease.
Tumbur ensures that fintech lending continues to pay attention to the element of prudence in lending. “We will continue to see their financial capabilities. If given the relief they can survive. We will see a good track record,” he said.
In terms of lenders (lenders), to his knowledge, there have been no reports of investment reduction. “Lenders have not significantly put the brakes on their loans. Even the need for an increase in borrowers is supported by lenders,” Tumbur said.
One of the fintech lending companies that recorded growth in loan demand from MSME was Akseleran. Accelerated Chief Credit Officer & Co-Founder Christopher Gultom said, on average there were 250 MSMEs applying for loans per day in the middle of this month.
The number grew 116% compared to February. Acceleration focuses on productive business loans, based on invoice financing and pre-invoice financing. “So far there has not been a significant impact from the coronavirus on Acceleration, because most borrowers come from the construction, oil and gas (oil and gas) sectors,” Christopher said in a press release.
Amartha experienced the same thing. Amartha founder and CEO Andi Taufan Garuda Putra said, the average value of the proposed loan increased every week. “We see the high enthusiasm of Mitra Amartha to run a business and improve the welfare of their families in the current situation,” Taufan said in a press release.
CEO of Kredivo Indonesia Alie Tan said the corona pandemic was an opportunity for companies to increase lending. “Financial technology can play an important role in helping people during this difficult situation,” he said in a press release.
Alie Tan, CEO of Kredivo Indonesia, invites the public to use a fintech platform that can be used to shop online or meet their daily needs in a cashless way to maintain productivity in this difficult time.
He said financial technology can play an important role to help people during this difficult situation. Through technological capabilities and artificial intelligence, making people do not need to face-to-face to make transactions so that productivity can continue to be maintained and business and economic wheels can continue to spin. These advantages make this industry tend to be stable.
“The condition of people who are more active at home can also be used to learn to manage finances better. We as fintech lending invites people to be more intelligent in utilizing financial technology accompanied by the ability to manage finances healthily and wisely,” he said.