Jakarta. The Financial Services Authority (OJK) officially revoked the peer-to-peer lending company Tani Fund Madani Indonesia (TaniFund) business license on May 3rd.

"This revocation is due to TaniFund's non-compliance with applicable provisions, specifically, failure to meet minimum equity requirements and failure to implement OJK supervision recommendations," said Aman Santosa, Head of the OJK Department of Literacy, Financial Inclusion, and Communication, on Wednesday.

TaniFund is currently facing payment issues involving approximately 128 investors, with a total defaulted investment value of around Rp 14 billion ($897,691).

Since mid-November 2021, TaniFund lenders have not received principal repayments, only investment returns.

Aman explained that the OJK has taken supervisory actions and imposed administrative sanctions, including restricting business activities. The OJK has also urged the management to commit to resolving TaniFund's issues.

"However, by the specified deadline, the management and shareholders were unable to resolve the issues, resulting in the revocation of TaniFund's business license," Aman added.

The revocation of TaniFund's business license was aimed at enforcing legislative provisions to ensure a healthy and trustworthy peer-to-peer lending industry. "The OJK has also referred the criminal case related to TaniFund to law enforcement authorities for further processing in accordance with applicable laws and regulations," Aman said.

With the revocation of the business license, TaniFund must cease its business activities. Furthermore, shareholders, management, and/or employees of TaniFund are prohibited from transferring, mortgaging, pledging, using the assets, or taking any other actions that may reduce the assets or decrease their value.

"To provide legal certainty and protect users and other relevant parties, TaniFund is required to undergo liquidation and establish a center for public/user complaint information and services," concluded Aman.

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