The Financial Services Authority (OJK) has revoked the operating license of peer-to-peer (P2P) lending fintech Crowde Membangun Bangsa (Crowde).
Agusman, Chief Executive of Supervision for Financing Institutions, Venture Capital Companies, Microfinance Institutions and Other Financial Service Institutions (PVML) at OJK, explained that the license was withdrawn because Crowde failed to carry out the required corporate recovery measures.
According to Kontan, Crowde had previously been placed under special supervision by OJK due to multiple issues, including unpaid obligations.
“OJK revokes Crowde, because Crowde was under special supervision and unable to restore the company’s condition,”
Agusman said at the OJK press conference during RDK on Friday (November 7).
Agusman added that Crowde had failed to meet the minimum equity requirement of IDR 12.5 billion and other obligations within the specified timeframe.
“Therefore, Crowde is declared an institution that cannot be rehabilitated, and its business license is revoked,”
he said.
He also noted that the firm’s sanction reflects OJK’s efforts to strengthen supervision, protect consumers, improve risk management governance, and consolidate the PVML sector.
Prior to the revocation, Crowde faced issues of default.
Problems reportedly arose from alleged misappropriation of funds linked to credit facilities provided by J Trust Bank, particularly in financing end-users, mostly farmers.
Allegations include fake end-users and falsified documents. OJK has reportedly investigated these violations and initiated legal proceedings.
Featured image credit: Edited by Fintech News Indonesia, based on image by rawpixel.com via Freepik
