Indonesia’s credit access gap continues to constrain economic growth, and responsible bank–P2P partnerships can help address it.
Together with Asosiasi Fintech Indonesia (AFTECH), Mandala Consulting presents our recently launched White Paper: “Driving Credit Expansion Through Responsible Collaborations Between Banks and P2P Lending Platforms.”
Indonesia’s formal credit-to-GDP ratio has remained at ~36% over the past decade. In comparison, East Asia and Pacific upper middle-income countries average ~70%, while lower middle-income countries average ~65%. An IMF study covering 31 emerging economies finds that both consumer and corporate credit positively contribute to economic growth. This suggests that credit expansion remains an underutilized engine of growth in Indonesia.
Many productive individuals and MSMEs remain outside the formal credit system. They are either unbanked, meaning they do not have a bank account, or underbanked, meaning they have an account but lack a credit history.
Our white paper shows that institutions serving these segments recorded the strongest growth, especially P2P lending. At the same time, banks remain the largest liquidity providers. Partnerships between banks and P2P platforms can connect this large pool of liquidity to previously untapped demand from underbanked segments.
The current landscape already shows promising progress, where responsible partnerships between banks and P2P platforms can help expand credit access and better serve underbanked segments. Going forward, we hope this impact can be scaled further with lower risk and stronger returns.
We would like to thank all banking executives who participated in the interviews, surveys, and FGDs throughout the process. We also appreciate the P2P platforms and ecosystem partners who supported the research.
Our sincere gratitude goes to the Bidang Perbankan dan Jasa Keuangan APINDO for their review and valuable input, and to Pengawas Lembaga Pembiayaan, Perusahaan Modal Ventura, Lembaga Keuangan Mikro, dan Lembaga Jasa Keuangan Lainnya OJK for their engagement and the opportunity to share and discuss this white paper.