JAKARTA, Nov 10 (Reuters) - Indonesia will in stages lower the maximum interest rates charged by financial technology (fintech) firms in the microfinance sector, amid complaints that overly high rates have been hurting borrowers, the country's financial regulator said on Friday.
Starting next year, fintech firms can only charge a maximum of 0.3% interest per day for a loan intended for consumption which will fall to 0.1% in 2026, the country's Financial Services Authority (OJK) said.
"Because if we don't regulate the interest rates properly, then the ones who suffer most are the consumers," Agusman, the OJK commissioner overseeing financing firms, told a press conference.
The authority wants 50% to 70% of loans provided by fintech firms channelled to productive activities by 2028, compared to below 40% currently, Agusman said.
The regulation on interest rates is part of the authority's plan to develop the fintech sector from 2023-2028.
Persons:
Agusman, Stefanno Sulaiman, Raju Gopalakrishnan
Organizations:
country's Financial Services Authority, Thomson
Locations:
JAKARTA, Indonesia