Abstract:
Iga Andita Lestari examines Indonesia’s surge in high-interest online loan disbursement between 2018 and 2024, finding that inflation, stagnant wages, and unstable employment have driven lower-income and middle-income borrowers toward costly digital credit. To address this, Lestari proposes three policy interventions: disincentivizing predatory fintech lending, promoting low-interest public loan alternatives, and capping digital loan rates. Together, these measures aim to protect vulnerable borrowers, enhance financial inclusion, and stabilize Indonesia’s consumer credit market.
Publication date:
December 11, 2025
Publication type:
Journal Article