OJK Revokes TaniFund's License

The Financial Services Authority (OJK) officially revoked the business license of Tani Fund Madani Indonesia (TaniFund) on May 3, 2024.

"This revocation is due to TaniFund's non-compliance with applicable provisions, specifically the failure to meet minimum equity requirements and to implement OJK supervisory recommendations," said OJK Literacy, Financial Inclusion, and Communication Aman Santosa said on May 8, 2024.

TaniFund is presently embroiled in payment issues affecting approximately 128 investors, with a collective defaulted investment value of around Rp14 billion (about US$897,691).

Since mid-November 2021, TaniFund lenders have ceased receiving principal repayments and only received investment returns.

Aman clarified that the OJK has undertaken supervisory measures and imposed administrative penalties on TaniFund, including constraining its business activities. Additionally, the OJK has urged TaniFund management to actively address the firm's challenges.

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

The revocation of TaniFund's business license was conducted to enforce statutory provisions, ensuring the integrity and reliability of the peer-to-peer lending sector.

"The OJK has also referred the criminal case related to TaniFund towards law enforcement authorities for further processing in accordance with applicable laws and regulations," Aman said.

Following the license revocation, TaniFund is compelled to halt all business operations. Furthermore, shareholders, management, and/or employees of TaniFund are prohibited from transferring, encumbering, pledging, utilizing assets, or undertaking any actions that could diminish assets or their value.