The Indonesia Financial Services Authority (OJK) has revoked fintech firm PT Investree Radhika Jaya’s (Investree) licence due to multiple violations of regulatory policy, according to an announcement on Tuesday.
Following the move, Investree will be required to cease all operations, settle employee compensation, and resolve matters with lenders, borrowers, and other stakeholders.
Before revoking the licence, the regulator had instructed Investree’s management and shareholders to meet the minimum equity requirements, which included seeking a strategic investor and coordinating with the ultimate beneficial owner. OJK had also issued a warning letter and imposed operational restrictions on the company before taking the final step.
“However, by the end of the deadline, the management and shareholders were unable to resolve the issues and comply with the regulatory requirements,” OJK stated.
DealStreetAsia had reported in August that Investree has set up a new caretaker team to oversee day-to-day management duties and carry out the company’s “limited operations” per OJK regulations.
As part of the licence revocation process and to protect customers and maintain financial system stability, the regulator has taken several measures. First, it has prohibited Investree’s co-founder and erstwhile CEO, Adrian A Gunadi, from assuming a shareholder or core management position in any financial company, though he remains responsible for addressing the startup’s ongoing issues.
Additionally, OJK will block Gunadi’s bank account, trace his assets, and coordinate with the police and law enforcement to pursue legal action on this matter.
Earlier this year, Gunadi had stepped down amid allegations of misconduct and other challenges faced by the company.
Investree, which raised over $200 million in October last year, has been grappling with a surge in bad loans and lawsuits from angry lenders. Individual lenders have also taken Investree to court since December 2023 on accusations of unlawful acts and breach of contracts.
DealStreetAsia reported in February that SBI Holdings, one of Investree’s existing investors, extended a $7 million rescue package to cover the firm’s operational costs.
