Fintech News Indonesia
February 22, 2024
The Indonesian Financial Services Authority (OJK) is closely monitoring fintech P2P lending platform Investree following public reports of potential operational and consumer protection violations.
Regulators are conducting an in-depth investigation through direct investigative investigations in response to concerns recently raised by the public. If violations are proven, OJK said it would take necessary action, potentially working with law enforcement agencies.
OJK encouraged Investree to operate responsibly, while urging the public to be cautious and informed about these issues.
The announcement follows recent financial troubles faced by Investree, including allegations of misconduct against former CEO Adrian Gunadi.
Gunadi was accused of diverting funds from Investree into his personal accounts and using his position to make the loan company a guarantor for his private company.
Investree has been facing liquidity issues despite securing a $231 million Series D funding round led by Qatar’s JTA International Holdings. Delays in disbursing funds have worsened the company’s financial difficulties and raised concerns about its ability to cover operating costs and generate revenue.
Moreover, Investree has come under scrutiny for its handling of non-performing loans, with its TKB90 success rate being significantly lower than the industry average, prompting lawsuits from lenders and investigations by authorities. OJK has previously imposed administrative sanctions on the platform due to these issues.
Investree secured a significant $7 million rescue package from existing investor SBI Holdings earlier this month.
The company earmarked US$4.5 million of this package for employee salaries, which includes back pay, benefits, taxes, payouts and other related costs.
An additional $1.15 million was allocated for legal and audit costs, $750,000 for curtailment costs, $500,000 for credit insurance and collections costs, and $100,000 for rent.
Featured image source: AVPN interview screen capture