The Financial Services Authority of Indonesia (OJK) is monitoring the conflict between PT JTrust Indonesia Tbk (J Trust Bank) and fintech firm Crowde regarding alleged fund embezzlement.

J Trust Bank filed a police report with the Jakarta Police Department on Feb. 11.

On Mar.7, OJK announced it is conducting both offsite and onsite audits to address fraud risks in the fintech lending sector.

It confirmed that J Trust Bank and Crowde are engaged in discussions and joint visits to borrowers to resolve the issue.

J Trust Bank had partnered with Crowde as a peer-to-peer lending platform to finance farmers.

However, internal investigations uncovered breaches of their Cooperation Agreement (PKS), particularly concerning loan disbursements.