Business Competition Supervisory Commission (KPPU) has recently fined 97 peer-to-peer (P2P) lending platforms due to operating the alleged interest rate cartel practices. The lenders violated Article 5 of Law No. 5 of 1999 by coordinating interest rates far above market equilibrium, effectively stifling price competition. Consequently, the commission imposed collective fines totaling Rp755 billion, with 52 firms receiving the minimum penalty of Rp1 billion each. The verdict was read out at the Commission’s Panel hearing last week. To subscribe please click here
