Indonesia seeks to crack down on "unhealthy" peer-to-peer lenders

P2P lending, internet-based platforms that link up borrowers and lenders, has become a popular way for small businesses to raise money and for under-banked individuals to get loans. - Reuters

JAKARTA, July 23 (Reuters): Indonesia has launched a crackdown on peer-to-peer (P2P) lenders through a new regulation and capital requirements, in a move that industry sources say should help clean up a booming online lending sector beset by consumer complaints.

The rules, announced this month by Indonesia’s financial services authorities (OJK), set a minimum capital requirement for lenders at a 25 billion rupiah ($1.67 million), up from 1 billion rupiah previously, with an additional demand to maintain at least 12.5 billion rupiah of equity at all times.