Indonesia’s Financial Services Authority (OJK) said that it will gradually lower the maximum interest rates charged by fintech companies in the microfinance sector due to concerns that high rates are negatively impacting borrowers.

From January 2024, these firms can only charge up to 0.3% daily interest on consumptive loans, decreasing to 0.1% by 2026. Meanwhile, fintech lending for productive purposes will only charge 0.1% per day next year.