🧠 Food for thought

Implications, context, and why it matters.

KoinWorks was already under OJK scrutiny over a separate alleged 365 billion rupiah (US$23 million) fraud tied to KoinP2P

• PT Lunaria Annua Teknologi, which runs KoinWorks, was already under tighter supervision from Indonesia’s Financial Services Authority, or OJK, over payment delays to lenders on KoinP2P, its peer-to-peer lending platform 1.
• The earlier case followed a 2021 partnership with MTH Global Investama. PT Lunaria Annua Teknologi later alleged that borrower ID-card data was fake, involving 365 billion rupiah (US$21.2 million) in transferred funds, or US$23 million 2.
• KoinP2P then proposed a two-year standstill on lender payments, with interest reset to 5% a year 2.
• OJK said KoinP2P’s controlling shareholders had agreed to add capital to support operations. The regulator was also carrying out an on-site investigation 2.

The scandal could strain Indonesia’s bank-fintech ties and investor confidence

• The alleged misuse of funds from state lender BRI, or Bank Rakyat Indonesia, could raise concerns across Indonesia’s financial system, not only at one lending platform.
• Banks may face closer review of their fintech lending partnerships. State-owned and private lenders may also revisit controls and oversight.
• Investor appetite may weaken for later-stage firms such as KoinWorks. Preqin, a financial data provider, lists it in a US$108 million series C plus debt round on Feb. 4, 2022 3.
• Two separate alleged cases at one firm, one tied to external fraud and one to corruption, could make venture capital and debt funding harder to secure for Indonesian peer-to-peer lenders.