Indonesia’s Financial Services Authority (OJK) has revoked the business license of PT Investree Radhika Jaya (Investree), a peer-to-peer lending platform.

The decision was made due to Investree’s failure to meet minimum equity requirements and other regulatory provisions.

The company also experienced operational difficulties and declining performance that impacted its services.

OJK had previously issued warnings and imposed activity restrictions, urging Investree to address its equity issues, secure new investment, and improve its performance.

However, these measures were unsuccessful, leading to the revocation of the license.

In addition to the license revocation, Investree is prohibited from transferring or obscuring company assets, except for fulfilling legal obligations, and must resolve employee rights in line with employment laws.

The company is also required to hold a general meeting of shareholders (GMS) within 30 days to form a liquidation team and dissolve the company.

OJK has also taken legal action against key individuals, including Adrian Asharyanto Gunadi, who is prohibited from holding key roles in financial institutions.

The regulator shared that asset tracing and potential legal proceedings are underway.

Gunadi was alleged to have diverted funds from Investree to his personal account and used his position to make the lending firm a guarantor for a personal company.

OJK is also working to recover assets and ensure the protection of Investree’s customers.

Investree is now required to cease all business operations, settle its obligations to employees and customers, and form a liquidation team.

Customers can contact Investree for assistance with outstanding issues.

Featured image credit: Edited from Freepik

The article first appeared on Fintech News Singapore