Lending rules: Indonesia
What the published rules require for unsecured consumer loans in Indonesia, in the order a loan is made, and how TS LMS handles each step.
Last reviewed 22 October 2026 · Email me when these rules change
Lender type covered Information technology-based joint funding (P2P lending, LPBBTI) operator licensed by the Financial Services Authority (OJK) under POJK 40/2024; finance companies (perusahaan pembiayaan) are mentioned only where the same rule covers them (AML, SLIK).
- 01
What licence do you need to lend in Indonesia?
Licence and conduct
What the rules require
Under OJK Regulation (POJK) No. 40 of 2024, an LPBBTI operator must first obtain a business licence from OJK and must be a limited liability company (PT) or a cooperative. It may not provide funding before it is registered as an electronic system operator, and it may fund only borrowers domiciled in Indonesia, with consumer funding capped at IDR 2,000,000,000 per borrower. It must keep equity of at least IDR 12,500,000,000 at all times and may not outsource the assessment of funding feasibility.
Effective 27 December 2024 · Rules as of 27 December 2024 · Source: Peraturan OJK Nomor 40 Tahun 2024 tentang Layanan Pendanaan Bersama Berbasis Teknologi Informasi · POJK 40 Tahun 2024 Layanan Pendanaan Bersama Berbasis Teknologi Informasi
How TS LMS handles it
Products, credit rules and limits are set up for each lender and country. Changes to credit policy and to products need a second person's approval, and every change is kept in the audit log.
- 02
Is there an interest rate cap in Indonesia?
Interest rate cap
What the rules require
OJK Circular Letter SEOJK 19/SEOJK.06/2025 caps the economic benefit (interest plus fees) on consumer funding at 0.3% per calendar day for tenors up to 6 months and 0.2% per calendar day for longer tenors. For productive funding the cap is 0.275% per day (up to IDR 50 million, tenor up to 6 months) or 0.1% per day otherwise.
Effective 31 July 2025 · Rules as of 31 July 2025 · Source: SEOJK 19/SEOJK.06/2025 tentang Penyelenggaraan Layanan Pendanaan Bersama Berbasis Teknologi Informasi
How TS LMS handles it
Each product can carry an annual rate ceiling and always carries a ceiling on the total cost of credit; a quote above either is refused.
- 03
How are loan fees regulated in Indonesia?
Fees and total cost
What the rules require
Under SEOJK 19/SEOJK.06/2025, the capped economic benefit includes interest or margin, administration, commission or platform fees and other costs; late-payment penalties, certified electronic signature costs and taxes are excluded. Late-payment penalties have the same daily caps as the economic benefit. The total economic benefit and late-payment penalties may not exceed 100% of the funding amount stated in the funding agreement.
Effective 31 July 2025 · Rules as of 31 July 2025 · Source: SEOJK 19/SEOJK.06/2025 tentang Penyelenggaraan Layanan Pendanaan Bersama Berbasis Teknologi Informasi
How TS LMS handles it
Every charge on a product counts towards the rate check, each product carries a ceiling on the total cost of credit, and staff cannot set a charge above the product's.
- 04
What affordability checks are required in Indonesia?
Affordability assessment
What the rules require
SEOJK 19/SEOJK.06/2025 requires credit scoring to consider the prospective borrower's character and repayment capacity, and limits consumer borrowers' payments of principal and economic benefit to 30% of income from 2026 (40% in 2025). Individual borrowers must be at least 18 or married and have average gross income of at least IDR 3,000,000 per month, supported by evidence such as payslips, and may not borrow through more than 3 operators; the age and income requirements apply to new or extended funding from 1 January 2026. POJK 22/2023 requires financial service providers to match products to the prospective consumer's needs and ability and to document that assessment.
Effective 1 January 2026 · Rules as of 31 July 2025 · Source: SEOJK 19/SEOJK.06/2025 tentang Penyelenggaraan Layanan Pendanaan Bersama Berbasis Teknologi Informasi · POJK 22 Tahun 2023 tentang Pelindungan Konsumen dan Masyarakat di Sektor Jasa Keuangan
How TS LMS handles it
Income and the debt-to-income ratio are assessed and kept with the credit decision; a limit above the suggested amount needs a written reason.
- 05
Can loan contracts be signed electronically in Indonesia?
Loan agreement and e-signature
What the rules require
How TS LMS handles it
Where loans are signed electronically, the agreement is stored unchanged and signed only after approval, and the signature record keeps who signed, when, the agreement's fingerprint and the device. Money is released by a second staff member who is not the approver, and not if the payout account differs from the one approved.
- 06
What identity checks and anti-money laundering duties apply in Indonesia?
KYC and AML/CFT
What the rules require
How TS LMS handles it
ID document and face checks, and sanctions and PEP screening, are built in. A sanctions match blocks approval and release until compliance clears it with a second officer's confirmation, and a PEP match needs a written enhanced due-diligence note before staff approval.
- 07
What are the data protection and credit bureau rules in Indonesia?
Personal data and credit bureau
What the rules require
How TS LMS handles it
Personal data is kept for set periods by type and then removed, and a borrower's request to access their data can be answered from the system. Contacting a borrower's emergency contact requires the borrower's recorded consent.
- 08
How is debt collection regulated in Indonesia?
Debt collection
What the rules require
How TS LMS handles it
Calls and messages are limited to set hours, and calls to a set number a day. Contact with third parties can be switched off entirely, or allowed only as an exception with the borrower's consent and, where set, compliance approval, using a script that never mentions the debt. Every contact is logged.
This page summarises published rules for general information; it is not legal advice. Rules change: check the current text with the authority before acting.