Jakarta, 21 March 2024 – As the holy month of Ramadan approaches and the Eid al-Fitr celebrations draw near, PT Teknologi Merlin Sejahtera (“UKU”), a fintech lending platform licensed and supervised by the Financial Services Authority (“OJK”) and the Indonesian Fintech Lending Association (“AFPI”) since 2019, stands as a convenient solution for customers to fulfill their financial requirements. Supported by AFPI, UKU continues its dedication to assisting regulators in augmenting financial product literacy among the Indonesian populace. Through in-depth insights and education on fintech lending, UKU aims to foster financial literacy across Indonesia.
AFPI identifies significant opportunities within the fintech industry based on data from the OJK, the World Bank, and Ernst & Young in 2023. The data indicates a fintech credit distribution encompassing 186 million productive individual users aged over 15, 46.6 million unbanked MSMEs, 132 million Indonesians lacking credit access, and a Credit Gap amounting to IDR 1,650 trillion, surpassing the IDR 1,000 trillion conventional IJK support. Furthermore, AFPI-EY research projects an Estimated Credit Gap for MSMEs reaching IDR 4,300 trillion by 2026, with a supply capacity of IDR 1,900 trillion, leading to a credit gap of IDR 2,400 trillion.
Tony Jackson, CEO of UKU, remarked, “Together with AFPI, we aim to provide the public with comprehensive insights into meeting their financial needs through fintech lending solutions, particularly during the Ramadan and Eid periods. Last year, in the 1-month period before Eid al-Fitr 2023, there was a 30% increase above the monthly average for the category of users applying for loans and 39% for the disbursements to customers. Furthermore, within the same year, we also recorded that loan applicants increased by 14% with the age range of 21-30 years old with the purpose of making loans to fund their small businesses. Through comprehensive and transparent features, we hope to make it easier for people to fulfill their financial needs. We are also committed to continue educating the public on how to borrow wisely and responsibly.”
Aligned with the #GakPakeRibet campaign, UKU offers a streamlined borrowing process, including downloading and installing the UKU application on Google Play and the App Store, completing necessary personal information according to KTP and personal account information rapid fund disbursement post-evaluation approval, and convenient fund repayment through various available transaction methods. UKU’s user-friendly interface ensures a seamless experience for prospective customers. Additionally, UKU holds ISO 27001 certification to safeguard company and customer data, mitigating the risk of personal data misuse.
Currently, UKU operates across various regions in Indonesia, with total fund disbursement as of December 2023 predominantly concentrated within Java, amounting to IDR 6.3 trillion, while outside Java, disbursements totaled IDR 2.4 trillion. This underscores Java’s strong market potential for UKU, with the top five disbursement locations in Indonesia being West Java (IDR 2.1 trillion), DKI Jakarta (IDR 1.4 trillion), East Java (IDR 1 trillion), Central Java (IDR 865 billion), and Banten (IDR 662 billion).
Entjik S. Djafar, Chairman of the Indonesian Fintech Lending Association (AFPI), emphasized, “Amidst the dynamic landscape of Indonesia’s fintech lending industry, it is imperative to uphold and enhance financial literacy education for the public. By fostering informed insights, individuals can make astute decisions in utilizing fintech lending solutions. Furthermore, we hope UKU will continue to commit to regulatory developments in the industry, providing accessible and transparent financial solutions for the public.”
Based on the OJK statistic, as of January 2024, the fintech landscape recorded approximately 1.2 million lender transaction users and around 123.45 million borrowers accessing credit. Over Rp785 trillion loans have been distributed to users, with 101 registered fintechs supervised by OJK.The legal fintech lending industry is committed to upholding healthy and ethical competition, prioritizing integrity and compliance for consumer protection, and fostering innovative and inclusive developments in related industrial sectors.
“We look forward to synergistic support from the media in prioritizing positive reporting on the peer-to-peer lending fintech industry. ‘Peer-to-Peer Lending’ or ‘Fintech Lending’ carries a different connotation from ‘Pinjol’ (online loan providers). We hope that this strategic partnership can continue to be sustainable between the media and fintech lending industry players.” Entjik concluded.
