Spire COO Jeffrey Bahar sees room for growth for FinTech P2P lending in Indonesia.

Indonesia’s fintech peer-to-peer(P2P) lending firm, PT Akseleran Indonesia Tbk, is considering a public offering, shedding light on other fintech lenders eyeing the Indonesian stock exchange amid challenges like rising interest rates. While some support this, others are cautious due to the tough times in the P2P sector. 

High interest rates and loan repayment difficulties pose issues. Raising funds from the private market is risky for fintech lending firms relying solely on one revenue stream. The non-performing loan ratio recently rose from 2.82% to 3.36%, underlining the need to attract new consumers and understand the competitive landscape. 

However, some believe this is the right move for fintech lending. The market offers more sustainable business models than the tech sector, promising exit opportunities in various domains. Notable gains from US fintech companies like SoFI and Affirm within a year have set a positive precedent. Akseleran and others expect similar outcomes due to strong growth records and risk management. 

Spire’s Chief Operating Officer Jeffrey Bahar sees growth potential for P2P lending. Comparing loan disbursements for fintech players – just 51.46 trillion rupiah compared with 441.23 trillion rupiah in disbursements by multifinance firms, he highlights room for expansion. However, he advises that successful IPOs are only possible for lenders with solid business models, low NPLs, and diversified revenue streams. 

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Marie Teo
Manager, Group Corporate Communications
Spire Research and Consulting
Phone: (65) 6838 5355
E-mail: marie.teo@spireresearch.com