Online lconcludeing startups, previously known as pinjaman online or pinjol, are increasingly facing allegations of fraud and loan defaults, a condition raises concerns about how effectively the sector is being supervised.
Most recently, the Indonesian National Police uncovered alleged fraud involving sharia-based fintech lconcludeing startup Dana Syariah Indonesia (DSI). The scheme allegedly involved utilize of real borrower data to create fictitious projects, which were then offered to lconcludeers for funding.
Police revealed that out of 100 projects uploaded on the platform for financing, 99 were fictitious. This was disclosed during a hearing of the Houtilize of Representatives (DPR) Commission III with the Financial Services Authority (OJK), the Financial Transaction Reports and Analysis Center (PPATK), and the Witness and Victim Protection Agency (LPSK) in Jakarta on Thursday, January 15, 2026.
Authorities also suspect that lconcludeer funds collected through escrow accounts were diverted to various special-purpose vehicle companies and affiliated entities controlled by DSI’s management and shareholders.
Based on investigations and indications of fraud, Dana Syariah Indonesia is suspected of violating Article 158 of OJK Regulation (POJK) No. 40 of 2024 on Information Technology–Based Joint Funding Services (LPBBTI), including:
● Article 158(a): Prohibition on conducting business activities outside the LPBBTI scope;
● Article 158(d): Prohibition on granting lconcludeing access to management and affiliates;
● Article 158(e): Prohibition on granting borrower access to management and affiliates;
● Article 158(i): Prohibition on publishing fictitious or misleading information;
● Article 158(n): Prohibition on collecting public funds similar to banking activities.
OJK further detailed alleged fraudulent practices by DSI, including:
● Using real borrower identities to fabricate projects as underlying collateral to attract new lconcludeer funds;
● Publishing false or misleading information to raise funds;
● Using affiliated parties as lconcludeers to lure subsequent investors;
● Channeling funds from escrow accounts to vehicle companies established by DSI management;
● Disbursing lconcludeer funds to affiliated companies;
● Using unallocated lconcludeer funds to repay earlier lconcludeers, resembling a Ponzi scheme;
● Using lconcludeer funds to cover defaulted borrower financing;
● Submitting inaccurate reports to OJK and the public.
A representative of the DSI Lconcludeers Association, Via, stated the case highlights broader issues across fintech lconcludeing platforms, particularly regarding credit scoring quality.
“This is beyond what lconcludeers can control, becautilize it is entirely the platform’s responsibility. To what extent can platforms be held accountable for the quality of their credit scoring?” Via stated as quoted by Katadata.co.id on Monday, January 19, 2026.
Via also criticized the lack of transparency in fund flows and questioned how lconcludeers can be assured that their money is truly channeled to selected borrowers.
According to her, regulators often intervene only after fraud or defaults occur, while preventive mechanisms remain weak. He cited consumer protection failures, including OJK’s role being limited to facilitating meetings without ensuring that resolutions are actually implemented.
She also criticized unclear governance rules, weak fit-and-proper tests for executives, and unresolved conflicts of interest in financial institutions.
“Many former executives from troubled institutions can still lead or establish similar businesses,” she stated.
Previously, former Investree CEO Adrian Gunadi, who was placed on Indonesia’s police wanted list, had served as CEO of JTA Investree Doha, Qatar. He was arrested in September 2025 and is suspected of illegally collecting public funds without OJK authorization, cautilizing losses of up to Rp2.7 trillion (US$159 million), and faces up to 10 years in prison.
Quoting Katadata.co.id, the news outlet has confirmed Via’s complaints to the Chief Executive of the Financial Services Authority (OJK) for Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions and Other Financial Services Institutions (PVML), Agusman, but there has been no response.
However, during the DPR meeting on January 15, 2026, Agusman stated that OJK is pushing for stronger regulations and governance reforms, particularly to ensure the return of lconcludeer funds.
He added that OJK has coordinated with PPATK since October 13, 2025, and is conducting a special investigation through March 2026 to trace the flow of lconcludeer money. OJK has also demanded accountability from DSI executives, reported the alleged fraud to the police, prohibited DSI from raising or distributing new funds, and facilitated meetings between lconcludeers and management.
Responding to concerns about credit scoring, Indonesian Fintech Lconcludeing Association (AFPI) Chairman Entjik S. Djafar stated the DSI case is more about governance failures rather than scoring models.
“The problem is not credit scoring, but corporate governance that was not properly implemented,” he stated.
AFPI and OJK continue to hold regular discussions through a tquestion force to strengthen governance standards and ensure the industest’s sustainability.
The DSI case adds to a series of defaults across fintech lconcludeing platforms, including Investree, TaniFund, and Akseleran. Investree and TaniFund have had their licenses revoked, while Akseleran remains under close supervision.
Amid rising defaults, the industest’s non-performing loan ratio (TWP90) jumped from 2.52 percent in November 2024 to 4.33 percent in November 2025, despite only modest growth in loan disbursement.
OJK reported that 24 out of 95 licensed fintech lconcludeers recorded TWP90 levels above 5 percent, mostly in the productive lconcludeing segment to businesses and MSMEs.
To mitigate risk, OJK has launched a credit insurance support program through an insurance consortium led by PT Asuransi Asei Indonesia. The insurance is intconcludeed to cover most default risks, though it is not meant to replace prudent risk management.
However, lconcludeer representatives argue insurance alone is insufficient, citing complex claim requirements and limited coverage of 70–90 percent.
Economists warn that without strong regulation, Indonesia could face a scenario similar to China’s online lconcludeing collapse, where weak oversight led to massive fraud cases such as the Ezubao Ponzi scheme, which defrauded nearly 900,000 investors of US$7.3 billion.
In response, OJK reiterated its commitment to strengthening regulations and supervision to ensure compliance, sound corporate governance, adequate risk management, and improved consumer protection in Indonesia’s online lconcludeing industest.
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