Indonesian Financial Services Authority (OJK) plans to increase the disbursement limit for productive loans in the peer-to-peer (P2P) lending industry by about five times to support small and medium enterprises (SMEs), according to a statement on Thursday.
The regulator plans to implement a new rule to increase the credit limit for productive lending from 2 billion rupiah to 10 billion rupiah, the statement said, adding that it is seeking recommendations and insights from industry players and other parties on the same.
However, there is a caveat. The rule will apply only to players with a bad debt ratio below 5%, OJK added.
