Online P2P lending sales continue to soar in Indonesia

The number of loans grew more rapidly as the fintech boom in Indonesia. The peer to peer lending online startups are experiencing a surge in credit sales, especially to private, retail and small business customers who are unbankable and untouchable by traditional banks.

Tinuku Online P2P lending sales continue to soar in Indonesia

Investree until early October 2017 has sold a loan of Rp321 billion, up more than seven times compared to December 2016 of Rp45 billion. This is the impact of increasing customer knowledge about online-based loans.

Co-Founder and CEO of Investree, Adrian Gunadi, said the loan sales target until the end of the year is Rp400 billion will be exceeded. Investree believes that the interests of small businesses continue to increase, while investors and customers are also increasing.

"The main contributor to loan disbursement is still to small entrepreneurs is 90%, the rest are individual or retail borrowers," said Gunadi.

Modalku grew sevenfold as early as October 2017. Modalku Co-Founder and CEO, Reynold Wijaya, said entering early October had posted a loan distribution of up to Rp324 billion which at the beginning of last year only Rp50 billion.

Modalku market share is still focused on small entrepreneurs. Until now they have lent to more than 400 small entrepreneurs and will expand the reach of business by adding services throughout the territory of Indonesia.

"Until the end of the year we are targeting Rp500 billion loan," said Wijaya.

KoinWorks has sold a loan of Rp50 billion until early October 2017. COO KoinWorks, Bernard Arifin, said loan sales rose tenfold from last year's Rp5 billion. The company expects to disburse Rp100 billion loan by year-end.

KoinWorks's strategy is to increase business partnerships and develop existing products. Currently KoinWorks non-performing finance (NPF) in the range of 0.2% and startup it targets to end the year down to 0%.