Fintech Lending and Financial Inclusion in Indonesia: A National and Regional Perspective

Andi Sessu; Sri Hartaty; Jacomina Vonny Litamahuputty

doi:10.61255/jeemba.v4i3.1058

Authors

Andi Sessu Universitas Muhammadiyah Prof.DR. Hamka
Sri Hartaty Politeknik Negeri Sriwijaya
Jacomina Vonny Litamahuputty Politeknik Negeri Ambon

DOI:

https://doi.org/10.61255/jeemba.v4i3.1058

Keywords:

Fintech Lending, Financial Inclusion, Spatial Distribution, Productive Financing, Credit Risk

Abstract

Purpose – This paper examines the role of fintech lending in strengthening national financial inclusion in Indonesia. The topic is important because fintech lending is often promoted as a digital credit channel that can expand access to finance, yet its contribution must be assessed not only from loan growth, but also from regional equity, productive use, borrower inclusion, and credit risk.

Design/methodology/approach – This study uses a quantitative descriptive approach with spatial analysis. Secondary data were obtained from OJK’s LPBBTI December 2025 statistics. The analysis covers national and provincial fintech lending indicators, including loan disbursement, borrower accounts, Java and non-Java distribution, productive-sector lending, MSME borrowers, gender distribution, and TWP90.

Finding/Results – The findings show that fintech lending has expanded credit access nationally, but its distribution remains concentrated in Java and major economic provinces. Productive-sector lending and MSME participation remain limited, while gender access is relatively balanced. TWP90 also indicates that inclusion must be assessed together with repayment sustainability.

Originality/Value – This study contributes by framing fintech lending inclusion through access, equity, productive quality, and risk sustainability. The main implication is that fintech lending policy should move beyond credit expansion toward more productive, regionally balanced, and responsible financial inclusion.

Abstract views: 44 ,

PDF downloads: 15

Downloads

Download data is not yet available.

References

Ababio, J. O. M., Yiadom, E. B., Ofori-Sasu, D., & Sarpong-Kumankoma, E. (2024). Digital financial inclusion and inclusive development in lower-middle-income countries: The enabling role of institutional quality. Journal of Chinese Economic and Foreign Trade Studies, 17(2/3), 133–151. https://doi.org/10.1108/JCEFTS-02-2024-0017

Affandi, Y., Ridhwan, M. M., Trinugroho, I., & Adiwibowo, D. H. (2024). Digital adoption, business performance, and financial literacy in ultra-micro, micro, and small enterprises in Indonesia. Research in International Business and Finance, 70, 102376. https://doi.org/10.1016/j.ribaf.2024.102376

Aloulou, M., Grati, R., Al-Qudah, A. A., & Al-Okaily, M. (2024). Does FinTech adoption increase the diffusion rate of digital financial inclusion? A study of the banking industry sector. Journal of Financial Reporting and Accounting, 22(2), 289–307. https://doi.org/10.1108/JFRA-05-2023-0224

Amaliah, I., Ali, Q., Sudrajad, O. Y., Rusgianto, S., Nu’man, H., & Aspiranti, T. (2024). Does digital financial inclusion forecast sustainable economic growth? Evidence from an emerging economy. Journal of Open Innovation: Technology, Market, and Complexity, 10(2), 100262. https://doi.org/10.1016/j.joitmc.2024.100262

Berentsen, A., & Markheim, M. (2021). Peer-to-peer lending and financial inclusion with altruistic investors. International Review of Finance, 21(4), 1407–1418. https://doi.org/10.1111/irfi.12333

Cevik, S. (2025). Promise (Un)Kept? Fintech and financial inclusion. Scottish Journal of Political Economy, 72(3), e70012. https://doi.org/10.1111/sjpe.70012

Del Sarto, N., & Ozili, P. K. (2025). FinTech and financial inclusion in emerging markets: A bibliometric analysis and future research agenda. International Journal of Emerging Markets, 20(13), 270–290. https://doi.org/10.1108/IJOEM-08-2024-1428

Demir, A., Pesqué-Cela, V., Altunbas, Y., & Murinde, V. (2022). Fintech, financial inclusion and income inequality: A quantile regression approach. The European Journal of Finance, 28(1), 86–107. https://doi.org/10.1080/1351847X.2020.1772335

Febriyani, A., & Rita, M. R. (2022). Determinan Kinerja UMKM: Fintech Lending, Modal Usaha dan Orientasi Pasar. AFRE (Accounting and Financial Review), 5(2), 131–139. https://doi.org/10.26905/afr.v5i2.7761

Guerra-Leal, E. M., Arredondo-Trapero, F. G., & Vázquez-Parra, J. C. (2023). Financial inclusion and digital banking on an emergent economy. Review of Behavioral Finance, 15(2), 257–272. https://doi.org/10.1108/RBF-08-2021-0150

Guo, Z., Wei, Y., Fan, S., & Shahbaz, M. (2024). Is FinTech making world more “inclusive”? Evidence from inclusive growth story of China. Technological Forecasting and Social Change, 209, 123780. https://doi.org/10.1016/j.techfore.2024.123780

Juita, V., Pujani, V., Rahim, R., & Rahayu, R. (2023). Gender differences in financial technology (FINTECH) adoption in Indonesia: An analysis of risk perceptions and benefits. Riset Akuntansi dan Keuangan Indonesia, 8(2), 145–158. https://doi.org/10.23917/reaksi.v8i2.2308

Maskara, P. K., Kuvvet, E., & Chen, G. (2021). The role of P2P platforms in enhancing financial inclusion in the United States: An analysis of peer-to-peer lending across the rural–urban divide. Financial Management, 50(3), 747–774. https://doi.org/10.1111/fima.12341

Mashoene, M., Tweneboah, G., & Schaling, E. (2025). FinTech and financial inclusion in emerging and developing economies: A system GMM model. Cogent Social Sciences, 11(1), 2491701. https://doi.org/10.1080/23311886.2025.2491701

Neelam, K., & Bhattacharya, S. (2022). Financial technology solutions for financial inclusion: A review and future agenda. Australasian Accounting, Business and Finance Journal, 16(5), 170–184. https://doi.org/10.14453/aabfj.v16i5.11

Otoritas Jasa Keuangan. (2026, April 15). Statistik LPBBTI Desember 2025. Retrieved May 2, 2026, from

https://www.ojk.go.id/id/kanal/iknb/data-dan-statistik/fintech/Pages/Statistik-LPBBTI-Desember-2025.aspx

Putri, A. P., Tiovandy, V., Kawijaya, J. Z. S., & Sandy, R. (2022). The impact of financial technology on the development of financial inclusion on MSME. Jurnal Riset Akuntansi Kontemporer, 14(1), 16–21. https://doi.org/10.23969/jrak.v14i1.4316

Ruan, J., & Jiang, R. (2024). Does digital inclusive finance affect the credit risk of commercial banks? Finance Research Letters, 62, 105153. https://doi.org/10.1016/j.frl.2024.105153

Setiawan, B., Phan, T. D., Medina, J., Wieriks, M., Nathan, R. J., & Fekete-Farkas, M. (2024). Quest for financial inclusion via digital financial services during COVID-19 pandemic: Case study of women in Indonesia. Journal of Financial Services Marketing, 29(2), 459–473. https://doi.org/10.1057/s41264-023-00217-9

Shen, Y., Hu, W., & Hueng, C. J. (2021). Digital financial inclusion and economic growth: A cross-country study. Procedia Computer Science, 187, 218–223. https://doi.org/10.1016/j.procs.2021.04.054

Song, Y., Gong, Y., Song, Y., & Chen, X. (2024). Exploring the impact of digital inclusive finance on consumption volatility: Insights from household entrepreneurship and income volatility. Technological Forecasting and Social Change, 200, 123179. https://doi.org/10.1016/j.techfore.2023.123179

Sun, Y., & Angelina, H. (2022). The effect of behavior, trust, and literacy about peer to peer lending on financial inclusion in the Jakarta community. Journal of Applied Finance & Accounting, 9(1), 29–41. https://doi.org/10.21512/jafa.v9i1.8340

Sun, Y., & Tang, X. W. (2022). The impact of digital inclusive finance on sustainable economic growth in China. Finance Research Letters, 50, 103234. https://doi.org/10.1016/j.frl.2022.103234

Tao, Z., Wang, X., Li, J., & Wei, X. (2023). How can digital financial inclusion reduces relative poverty? An empirical analysis based on China household finance survey. Finance Research Letters, 58, 104570. https://doi.org/10.1016/j.frl.2023.104570

Tok, Y. W., & Heng, D. (2022). Fintech: Financial inclusion or exclusion? IMF Working Papers, 2022(080), 1–35. https://doi.org/10.5089/9798400208645.001

Wang, H., Du, X., Ge, C., & Wu, W. (2024). Does digital credit alleviate household income vulnerability? Pacific-Basin Finance Journal, 88, 102542. https://doi.org/10.1016/j.pacfin.2024.102542

Widyastuti, U., Respati, D. K., Dewi, V. I., & Soma, A. M. (2024). The nexus of digital financial inclusion, digital financial literacy and demographic factors: Lesson from Indonesia. Cogent Business & Management, 11(1), 2322778. https://doi.org/10.1080/23311975.2024.2322778

Xi, W., & Wang, Y. (2023). Digital financial inclusion and quality of economic growth. Heliyon, 9(9), e19731. https://doi.org/10.1016/j.heliyon.2023.e19731

Yudaruddin, R., Nugroho, B. A., Mardiany, Fitrian, Z., Hapsari, P., Fitrianto, Y., & Santi, E. N. (2024). Liquidity and credit risk in Indonesia: The role of FinTech development. SAGE Open, 14(2), 21582440241245248. https://doi.org/10.1177/21582440241245248