JAKARTA, MONDAY, 03 JULY 2023 – YouGov, a reputable internet-based market research and data analytics company headquartered in London and operating across Europe, North America, the Middle East, and the Asia-Pacific region, conducted a study on the fintech industry in Indonesia. The study unveiled a 28% growth in the market share of P2P Lending in just 6 months, despite the economic challenges faced post-pandemic. This study further solidifies the position of fintech, particularly P2P Lending, as an attractive investment instrument for the public.
This positive response from the public is supported by the statement of the Financial Services Authority (OJK). Imansyah, Deputy Commissioner of the OJK Institute, in the webinar titled “Building customer confidence in digital assets against cyber risks” (30/05/2023), explained that the performance of P2P Lending fintech has significantly improved, with the current number of licensed P2P Lending platforms in Indonesia reaching 102, including seven Sharia-based P2P Lending platforms.
The total loans accumulated in the past six years have reached IDR 528.01 trillion, with an outstanding value of IDR 51.12 trillion as of December 2022. The number of P2P Lending users has reached 100.8 million users, encompassing both borrowers and lenders. This means that nearly half of Indonesia’s population has used the fintech P2P lending platform.
In terms of assets, the overall assets of P2P Lending fintech amount to IDR 5.51 trillion, with IDR 5.38 trillion in conventional provider assets and IDR 133.64 billion in Sharia-based provider assets. The non-performing loan (NPL) rate stands relatively low at 2.78%.
Investing through Sharia-based P2P Lending has also demonstrated significant growth, contributing 33% to the overall expansion of the P2P Lending market share in Indonesia. Specifically, ALAMI Sharia, the largest Sharia-based P2P Lending platform, has firmly established itself amidst fierce competition. It has experienced an 11% increase in brand awareness and doubled its usage within six months, surpassing its rivals.
According to the latest research by YouGov, the P2P Lending market share has soared by 28% in just six months. ALAMI, as the leading Sharia-based peer-to-peer lending platform in Indonesia, has outpaced its competitors in terms of growth. This can be attributed to increased public exposure to ALAMI, with an 11% surge in usage within six months, indicating remarkable progress. Users perceive ALAMI Sharia to satisfy three (3) critical factors when choosing investment instruments: it’s licensed and closely supervised status by OJK, transparency in providing information to users, and robust operational performance despite ongoing macroeconomic challenges. Furthermore, ALAMI’s steadfast adherence to Sharia principles across all aspects of its business has contributed to its improved performance.
Harza Sandityo, President Director of ALAMI Sharia, revealed that as of May 2023, ALAMI has disbursed productive financing exceeding IDR 5 trillion, benefiting over 12,000 financing projects. “This disbursement would not have been possible without the support and trust of our funders/investors, who currently number more than 140,000 users,” said Harza.
Social media platforms such as Facebook, Twitter, Instagram, YouTube, and Word of Mouth (WOM) serve as the three (3) primary effective channels for marketing P2P Lending products and services. To enhance public awareness, ALAMI Sharia consistently provides education and literacy on Sharia-based P2P Lending through various self-initiated efforts and collaborations with parties including OJK and the academic community, engaging with its users.
Imansyah also expresses hope for the ongoing improvement in the performance of P2P Lending fintech and its positive contribution to financing, particularly for micro and small enterprises (SMEs).
About AC Ventures
AC Ventures (ACV) is a top Southeast Asian venture capital firm that invests in early-stage startups focused on Indonesia and ASEAN, with over US$500 million in assets under management. The firm empowers entrepreneurs with more than just capital by combining operational experience, industry knowledge, deep local networks, and resources. ACV’s team has invested in over 120 tech companies in the region since 2012. With a team of more than 35 professionals led by Adrian Li, Michael Soerijadji, Helen Wong, and Pandu Sjahrir, it has offices in Jakarta and Singapore.
About ALAMI P2P
ALAMI is a Sharia-based financial technology peer-to-peer lending company founded in 2018 by Dima Djani, Harza Sandityo, and Bembi Juniar. ALAMI has been licensed by the Financial Services Authority (OJK) since May 27, 2020. Currently, ALAMI is one of the world’s largest Sharia-based financing platforms for micro, small, and medium enterprises (MSMEs), with a disbursement accumulation of more than Rp5 trillion. ALAMI has provided financing to over 12,000 strategic MSME projects in Indonesia. The ALAMI ecosystem has reached 482 cities in 34 provinces throughout Indonesia, involving both funders and beneficiaries in various commercial and social activities. ALAMI’s efforts have received prestigious recognition, including the “Best P2P Financing Platform” globally at The Asset Triple A Awards for two consecutive years since 2019 and the Excellence in the Islamic Fintech Innovation category (the most Innovative Sharia Fintech) from the Global Islamic Finance Awards (GIFA) 2022. For more information, visit http://alamisharia.co.id.