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The Financial Services Authority (OJK) noted that the online lending industry incurred a net loss of Rp135.61 billion in early 2024 after turning a profit last year.

The fintech lending or online lending industry incurred a loss of Rp135.61 billion in January 2024. Despite this, the online lending business recorded a profit of Rp4.43 trillion throughout 2023. According to the Statistics of Peer-to-Peer Lending for the January 2024 Period by the Financial Services Authority or OJK, the online lending industry recorded profits every month during the previous year. The smallest profit in 2023 was Rp40.58 billion in January, and the highest was Rp608.21 billion in November.

The profitability ratio, or the ratio of profit to total assets (ROA), of the online lending industry decreased by 1.93%. The net profit ratio to total equity (ROE) decreased by 3.76%. Meanwhile, the ratio of operational expenses to operational income (BOPO) increased from 89.75% in December 2023 to 95.87% in January 2024. BOPO throughout the previous year remained stable in the range of 86.7% - 89.75%. There are a total of 101 online lending companies licensed by OJK, seven of which are Sharia-compliant.

The total assets of these 101 online lending companies amount to Rp7.03 trillion, with liabilities of Rp3.43 trillion and equity of Rp3.6 trillion. Online lending startups disbursed loans with outstanding values amounting to Rp60.4 trillion. The default rate on repayments exceeding 90 days, or TWP 90, is 2.95%, equivalent to around Rp1.8 trillion.

However, according to a survey by Bank BTPN entitled "Jenius Study: Digital Savvy Behavior during Ramadan & Eid al-Fitr 2024," public interest in online loans is increasing during Ramadan and leading up to Eid al-Fitr 2024.

In the survey conducted from February 28 to March 18, 2024, the number of digitally savvy individuals, or those adapting to the digital world, who chose to apply for online loans increased to 35% of total respondents. This figure represents a 13% increase from the previous year.

"According to the survey results, 35 percent of them plan to take out loans during Ramadan 2024 for various purposes, including preparing for Eid al-Fitr (60%), business capital (46%), and home renovations (18%)," said Febru Rusli, Digital Banking Partnership Head at Bank BTPN, as quoted by Antara on Monday (1/4/2024).

IN