JAKARTA – A concerning trend is emerging in Indonesia’s financial landscape: the increasing indebtedness of young people, particularly within the peer-to-peer (P2P) lending sector. Recent data paints a picture of a rapidly evolving market, with both opportunities and risks.

One report indicates that a notable portion of bad credit originates from the younger generation. “Digital generation, brutal debt: 90% bad credit comes from young people,” according to one source.

The P2P lending market itself is experiencing ample growth. As of March 2025, the value of lending distribution reached IDR 27 trillion, signaling increased activity in the sector. However, this growth also raises questions about sustainability and responsible lending practices.

P2P Lending Performance and Optimism

Profit rose 9% in 2024, Kredione was optimistic that the P2P Lending business was increasingly planted

Data from 2024 reveals the performance of various P2P lending platforms. An analysis of 10 platforms with the largest revenue provides insights into the competitive landscape and the factors driving success in this market. While some platforms are thriving, the overall health of the sector depends on effective risk management and regulatory oversight.

Despite concerns about rising debt, some industry players remain optimistic. Such as, Kredione reported a profit increase of 9% in 2024 and expressed confidence in the continued growth of the P2P lending business. Though, this optimism must be tempered with a realistic assessment of the challenges facing borrowers and lenders alike.

The Impact on Borrowers

The increasing reliance on loans, particularly among those with limited financial resources, raises concerns about financial well-being. “Who borrowed the loan to increase, the small people lived difficult,” one report notes, highlighting the potential for debt to exacerbate existing economic challenges.