Online lending is a lucrative business in Indonesia, where a large portion of the population is still unbanked and has little access to credit.

But in its early days, various bad actors emerged, taking advantage of consumers with predatory practices. Though regulators eventually stepped in to police the industry, a lack of transparency in the licensing process recently led to allegations of profiteering and conflicts of interest.

And as Covid-19 causes the economy to plunge and sends workers into unemployment, online lenders are encountering a surge of borrowers who are likely to default on their loans.

Tech in Asia correspondent Putra Muskita digs into the issue of regulations, while Aditya Hadi Pratama and Melissa Goh report on how the industry is faring amid the pandemic.

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