Jakarta, CNBC Indonesia – The Business Competition Supervisory Commission (KPPU) named 44 loan companies as reported for alleged violations of anti-monopoly regulations. The peer-to-peer lending fintech platform is suspected of controlling prices.

In a press release, the KPPU explained that the pinjol cartel case has now been upgraded from the initial investigation process to the investigation stage. During the investigation stage, 44 companies were named as respondents for alleged violations of Law no. 5 of 1999 concerning Prohibition of Monopoly Practices and Unfair Competition.

KPPU will summon all parties including 44 pinjols as reported parties, witnesses and experts to collect evidence of alleged violations.

In the initial investigation stage, KPPU found that the Indonesian Joint Funding Fintech Association (AFPI) had issued a Code of Conduct for Responsible Information Technology-Based Money Lending and Borrowing Services. The guidelines are considered to regulate the total amount of interest, loan fees and other costs not to exceed a flat interest rate of 0.8 percent per day. In 2021, this amount is set not to exceed 0.4 percent per day.

From the information collected, including from 5 P2P lending providers, AFPI, and the Financial Services Authority, the KPPU has obtained evidence of a violation of the anti-monopoly law.

The KPPU also found that the purpose of AFPI’s regulation of determining the total amount of interest, loan fees and other fees is to protect consumers from predatory lending costs or the practice of providing loans with unreasonable terms and interest. AFPI guidelines also aim to ensure that loans are not given without considering the borrower’s repayment ability.

In an investigation that will last for 60 days, the KPPU will prove that the behavior of the lending platform which applies the same interest rate is the result of an agreement between the organizers.

“In principle, in a competitive market, every P2P lending business actor will run his business more efficiently, so that he is able to set lower interest rates than his competitors and provide various choices of facilities and interest rates for consumers,” said Gopprera Panggabean, Director of Investigation at the Deputy for Law Enforcement of the KPPU.

[Gambas:Video CNBC]

(dem/dem)