OJK revokes TaniFund’s license, asks firm to liquidate

Photo credit: TaniGroup

Otoritas Jasa Keuangan (OJK), Indonesia’s financial services authority, has revoked the business license of TaniFund, a peer-to-peer lending platform operating under local agritech company TaniHub.

The company failed to meet the minimum equity requirements and to implement OJK’s supervisory recommendations, the regulator said in a release. TaniFund is also obliged to liquidate and establish a center for information and public complaint services for the public.

OJK said it had progressively imposed administrative sanctions on TaniFund, limited its business activity, and consistently communicated with the company.

However, the regulator said that “by the specified deadline, the management and shareholders failed to resolve the issues, resulting in the revocation of TaniFund’s business license.”

TaniFund has struggled with bad credit. Local media outlet Kompas noted that from October 2022 to early 2023, its 90-day repayment success rate had declined from 50% to 36%.

By the end of 2022, OJK had received 29 customer complaints against TaniFund concerning default cases. Later on, a group of TaniFund lenders reported the platform to the police, with 14 billion rupiah (US$872,900) in losses between 129 investors.

TaniFund parent TaniHub has conducted at least two rounds of layoffs. Several of its C-level executives have also left the company amid allegations of misused VC funds by the management.

TaniHub most recent funding round was in May 2021, when it raised US$65.5 million from MDI Ventures, BRI Ventures, and other investors. Apart from TaniFund, the company also offers ecommerce and logistics support through TaniHub Food Solutions and TaniSupply, respectively.

Currency converted from Indonesian rupiah to US dollar: US$1 = 16,036 rupiah.

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