Central Jakarta District Court Nullifies KPPU Ruling on Upper Limit of Online Loan Interest Rates

JAKARTA, KOMPAS.com - The Commercial Court at the Central Jakarta District Court has annulled a ruling from the Business Competition Supervisory Commission (KPPU) regarding the imposition of a cap on interest rates for online loans (pinjol) affecting 97 business entities.

The annulled KPPU ruling is numbered 05/KPPU-I/2025, which was issued last March.

The KPPU stated that the imposition of a maximum interest rate by the 97 pinjol companies was invalid as it violated Article 5 of Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Competition.

Now, the Central Jakarta District Court has annulled this KPPU ruling.

Central Jakarta District Court spokesman Sunoto said the decision was made after the judges granted a request for objection submitted by business actors against KPPU Decision No. 05/KPPU-I/2025 dated March 26, 2026.

"The ruling was announced in an open court session on Thursday (October 22, 2026)," Sunoto stated in a press release on Friday (October 23, 2026).

The panel of judges that decided the case included Anton Rizal Setiawan as the head judge, with members Achmad Rasyid Purba and M Arief Adikusumo.

OJK's Directive as Basis for Annulment of KPPU Ruling

In its considerations, the judges assessed that the imposition of a maximum interest rate for pinjol is part of the Financial Services Authority's (OJK) guidance to address legal gaps as the online loan industry began to develop.

The judges noted that at the onset and growth of the pinjol industry, there were no clear regulations governing it, including oversight mechanisms.

The OJK then provided guidance to business actors, including on setting maximum interest rates, along with threats of sanctions for those who violate the rules.

"Business actors cannot be penalized because they were following directives from the regulatory authority that oversees them," the judges stated in their ruling.

Judges Claim OJK Conducts Active Oversight

The judges also determined that the OJK carried out active monitoring of the maximum interest rate policies. One example includes circulars urging business operators to comply with the regulations.

This maximum interest rate policy was subsequently taken over by the OJK through OJK Circular Letter No. 19/SEOJK.06/2023, effective from January 1, 2024.

Based on these considerations, the judges viewed the imposition of the maximum interest rate as part of the state action doctrine, that is, actions taken by state authorities to fill existing legal voids.

Additionally, the judges differentiated between the imposition of a price ceiling and price fixing. According to them, the establishment of a maximum interest rate is not a legally prohibited practice.