Indonesia has become a promised land for the development of the mobile payday loan market (locally known as Pinjol). Based on data from the Financial Services Authority (OJK), in April, 122 companies provide legal payday loan services online. But data from the Institute for Economic and Financial Development (INDEF) shows that 95% of payday loan services are illegal.

Many people today choose to borrow money on the payday loan because they (1) receive the money instantly, (2) face no restrictions on how to use the loan, (3) have a bad credit rating, (4) don’t need any collateral, and so on.

From a marketing perspective, many Chinese companies are entering the Indonesian payday loan market due to the tightening industry regulations set by their government. As the Indonesian market is still in its infancy, foreign companies expect to take a chunk of the domestic market ahead of any potential regulatory changes.