The challenges of heavy industries

ACTOR peer-to-peer or P2P lending companies have created a special forum for the Indonesian Financial Finance Association (Afpri) to focus more on developing and strengthening the national financial sector segment.

Hendrikus Pbadagi, Director of Licensing and Oversight Management at Fintech OJK, said the new badociation should help prevent the risks of expanding the financial technology sector (tekfin) in the country. The badociation, chaired by Adrian A Gunadi from Investree, will work with OJK.

"The badociation consists only of P2P loans which, in the future, adapt to the OJK (POJK) regulation, whereas Aftech has several platforms, some of which are subject to the Bank of Indonesia (BI) law, which is e-commerce with the Ministry of Communication and Information.The Association will work together when a general problem on Aftech will be raised, but when the 'P2P loan badociation will speak,' said Hendrikus last weekend.

According to him, the badociation has been formed and counts 8 compartmental structures with their respective specialties to support more and more powerful tekfins. The container should be able to help regulators develop industrial technology to become stronger.

He explained that the badociation will oversee the future of the tekfin industry, which will become increasingly burdensome, because there are two sides to consider: lenders (lenders) and borrowers (borrowers).

Everyone has a problem that needs to be dealt with properly. Lenders are tied to the fact that their funds are not lost and their data is not misused. "The issue of borrowers that is still hot is related to inhumane collection practices to impose high interest rates," said.

The regulator, he continued, currently gives permission to tekfin only 73 authors. In the future, its number is expected to increase as there are already 47 companies in the process of registration, 59 companies have returned their registration and 38 companies have expressed interest.

According to him, until the end of September, the tekfin industry had made loans worth R13.8 trillion and, outside Java, had reached R.2.2 trillion. The total cumulative lender accounts rose to 161,297 entities, an increase of 59.76% over end-2017. The borrower's account recorded 2,300,007 entities, a dramatic increase 785%.

In good health

Loan characteristics, the lowest average loan (51.86 billion rupees) and the average amount disbursed (69.69 million rupees). Hendrikus pointed out that the industry of tekfin in Indonesia should not end, because in China, many have been closed due to insalubrity.

"It is hoped that in the future, this sector will be strong and healthy and that it will contribute to the national financial sector." The healthy feature is that people can borrow easily and mature can come back The Association is helping the regulator address a number of current issues, including the big problem of conventional financing and sharia law.

Of the total number of tekfins currently registered, there are only two sharias. Presumably the number keminiman, because the badociation is difficult to solve the problem of the birth of syarih tekfin. The P2P loan badociation will include a special compartment dedicated to Sharia law.

In addition, the licensing issues faced by potential new players. Long queues are not caused by the old regulator in agreement. The old process is due to the fact that many players perform tests when registering with regulators. The real problem when submitting to the regulator is that the completeness of the documents is incorrect or does not meet the requirements.

"When, for example, all shipments are completed and complete on KTP, there are foreigners who only present pbadports, especially a tourist pbadport, we give back." The badociation can help because there is a executive responsible for lending, sharia, then the head of the digital infrastructure sector, "he added. He mentioned that the space for the development of tekfin was still wide open.

Similarly, the space to face various challenges is also very large. At present, the total allocation of Tekfin industry funds is 13 trillion rubles. If we refer to data from the Ministry of Cooperatives and SMEs, there are 50 million MSMEs. If a UMKM requires financing of about 20 million rupees, the need for credit can reach 1,000,000,000 rupees a year.

Therefore, the presence of the badociation is very useful to formulate the development of the industry tekfin. One of the problems that will be scheduled later is blockchain technology related to the customer's credit history. This technological system is similar to SLIK adopted by OJK.

The difference is that the SLIK data is centered on OJK, while Blokchain is on each server, but the actors are connected, which facilitates synergy. This technology is supposed to be more efficient and helps simplify the tracking of a potential customer's credit history.

The plan is to determine if the system is implemented or not, beginning in the last quarter of next year. "Nevertheless, we hope that if the blockchain testing system set up abroad has been put in place, the country will be able to follow in order not to waste too much time with other countries," said Hendrikus.

The president of the daily, Aftech Kuseryansyah, acknowledged one of the challenges of the current P2P commercial actor with regard to relations with consumers and other entrepreneurs. There is already a code of ethics and an ethics committee set up by Aftech to anticipate behavior that is not in line with ethics.

For the ethics committee, this has not yet been formalized until now, but it will be one of the next efforts to improve the sector. He also claimed to have helped members. (Budi Nugraha-18)