Indonesian peer-to-peer lending platform Taralite is now officially licensed by the Indonesian Financial Services Authority (OJK) to operate in the country, according to a statement released by the company.
“We hope to overcome the financing gap in Indonesia by providing access to safe and competitive loan services,” said Taralite’s president director Sharly Rungkat in the statement. The company’s focus market is Indonesia’s 60 million micro, small, and medium enterprises (MSMEs).
OJK requires all online lenders to be vetted and registered with the regulator. The evaluation process can take several months, if not longer. The decision to examine and eventually authorize the operations of reliable fintech lenders came after multiple cases of identity fraud and sky-high interest rates involving unregistered P2P lending platforms.
OJK maintains a publicly accessible list of all licensed fintech companies. As of April 30, the OJK had issued licenses to 161 fintech companies, 33 of which are lenders. The roster, although not up to date, serves as a reference point for consumers by indicating which firms have already been reviewed by the government.
In March 2019, Taralite was acquired by Ovo, the mobile wallet associated with Indonesia’s Lippo Group. The acquisition was part of Ovo’s attempt to push deeper into online lending.