The Indonesian Joint Funding Fintech Association (AFPI) has reassured stakeholders that the presence of 21 peer-to-peer (P2P) lending companies with bad credit rates exceeding 5 percent does not pose a significant threat to the overall stability of the fintech industry. AFPI Chairman Entjik S. Djafar explained that the total non-performing loan (NPL) rate, measured by the TWP90 indicator, remains healthy despite these companies. He noted that the portfolios of these 21 companies are relatively small and dispersed, which mitigates their impact on the market. The majority of these companies operate within the productive sector, where economic fluctuations and fraudulent activities have contributed to increased default rates. To address these challenges, AFPI is actively working on enhancing risk management and credit risk protocols for online lenders. The overall bad credit risk in the online lending sector stands at 2.52 percent, reflecting a slight increase from the previous month.
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