Fintech Borrowing Losses Reached IDR 114.08 Billion Due to High Operating Expenses


The Financial Services Authority (OJK) recorded a loss to financial technology or fintech companies of Rp. 114.08 billion in the first semester of 2022. This realization decreased compared to the previous month of Rp. 116.75 billion.

Based on OJK statistics, this online loan company’s losses are bigger than at the beginning of the year, such as in January 2022 of Rp. 7.42 billion, February of Rp. 5.29 billion, and March of Rp. 21.68 billion. The disadvantages of online loan companies are due to high operational costs.

The online loan company’s operating expenses were recorded at Rp 4.69 trillion in the first semester of 2022. While its operating income was Rp 4.61 trillion.

If detailed, the labor burden is Rp 1.21 trillion. This total employment burden increased almost nine times compared to January 2022 of Rp 154.47 billion.

Likewise with marketing and advertising expenses which increased many times to Rp 1.46 trillion. Followed by general and administrative expenses of Rp 1.04 trillion, IT development and maintenance expenses of Rp 506 billion, and financial expenses of Rp 228 billion.

Its non-operating expenses also increased to Rp 218 billion, contributed by interest expense/profit sharing distribution, bank administration expenses, and foreign exchange differences. The BOPO ratio, aka total operating expenses and total operating income, is 101.74 percent.

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