TEMPO.CO, Jakarta - West Java continues to top the list as the province with the highest amount of peer-to-peer (P2P) or online lending in Indonesia
According to data from the Financial Services Authority (OJK) as of February 2025, the province’s total active online loans reached Rp20.23 trillion. This figure accounts for a quarter of the national total, which stands at Rp80.07 trillion.
Alongside the large loan value, West Java also reported a non-performing loan rate (NPL 90) of 3.38 percent, covering more than 6.44 million active accounts.
The high volume of online lending in the province is influenced by several factors, including its dense population, broad digital access, and limited availability of credit from formal financial institutions. However, a key underlying issue contributing to this trend is the low level of financial literacy among the population.
In second place is Jakarta, with total loans amounting to Rp12.55 trillion and an NPL rate of 3.21 percent, spread across 2.64 million active accounts.
East Java ranks third, with Rp10.02 trillion in loans and a non-performing loan rate of 2.98 percent. This includes 2.82 million active accounts.
Central Java holds the fourth spot with Rp6.7 trillion in total loans and an NPL rate of 2.84 percent, also disbursed to 2.82 million accounts.
Banten follows in fifth place, with Rp6 trillion in total loans and a 2.74 percent NPL rate, recorded across 1.64 million accounts.
The Rise of the 'Galbay' Online Loan Movement
Recently, the so-called 'Galbay', or failed payment, movement has gained traction on social media. This movement encourages borrowers to intentionally default on their online loan repayments.
The Chairman of the Indonesian Joint Fintech Financing Association (AFPI), Entjik S. Djafar, stated that the organization plans to report individuals promoting this movement to the police. He explained that this action harms licensed digital lending platforms and that AFPI has already submitted a report to the OJK.
Entjik noted that this movement is particularly popular among younger generations. AFPI is urging law enforcement to act against those promoting irresponsible behavior, while continuing efforts to educate the public on the importance of financial discipline and accountability.
OJK Urges Media to Champion Financial Literacy
The Financial Services Authority is encouraging the mass media to actively contribute to improving national financial literacy. The OJK believes that better financial understanding among the public will help support economic growth and enhance overall welfare.
Friderica Widyasari Dewi, Executive Head of the Supervisory Board for Financial Services Business Behavior, Education, and Consumer Protection at OJK, highlighted the media’s strategic role in delivering accurate and balanced financial information to the public.
Speaking in Jakarta on Monday, Friderica emphasized the need for ongoing collaboration between OJK and media institutions to expand financial literacy and inclusion across society. According to her, this partnership can ultimately help build a stronger economy and improve the public’s financial well-being.
“We urge mass media to become agents of financial literacy and to provide clear and informative financial education,” she said during the Discussion and Training of Trainers (ToT) program titled OJK CARE: Driving Financial Literacy Ambassadors in Indonesia, as quoted by Antara.
Recognizing the Signs of Illegal Online Loans
OJK has called on the public to stay alert and understand the difference between legal and illegal online loan providers. The authority lists the following characteristics of illegal digital lenders:
They operate without licenses and are not registered with OJK.
They offer loans via text messages or WhatsApp.
They provide instant disbursements without proper verification.
They do not transparently disclose interest rates and penalties.
They often intimidate or threaten borrowers over late payments.
They lack official consumer complaint channels.
They do not clearly identify their management or office locations.
They request full access to personal data on borrowers’ phones.
They use debt collectors who are not certified by AFPI.
Tips to Avoid Falling Victim to Illegal Lenders
To protect themselves from illegal online loans, OJK advises the public to take the following precautions:
Manage finances carefully, including tracking spending and setting aside emergency savings.
Improve financial knowledge through training or online resources.
Prioritize spending on essential needs rather than wants.
Avoid consumerist behaviors such as using credit for luxury items or entertainment.
Steer clear of browsing or shopping without purpose, which can lead to impulse buying.
Use loans for productive, income-generating purposes rather than consumption.
Do not fall into the habit of borrowing to pay off other debts.
Ilona Estherina and Michelle Gabriela contributed to the writing of this article.
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