OJK reveals two illegal online lending issues discussed at Cabinet meeting

TEMPO.CO, JakartaFinancial Services Authority (OJK) Chairman Wimboh Santoso revealed two issues with illegal online lending services that had become the subject of the cabinet meeting. One of the problems is the illegal loan transaction carried out through banking channels, money transfer companies and applicators.

“It weakens the adoption of the Know Your Customer (KYC) principle,” Wimboh said when signing a joint statement on eradicating illegal online lending on Friday, August 20.

Other institutions and ministries involved in the joint declaration included the Bank of Indonesia, the National Police, the Ministry of Cooperatives and SMEs, and the Ministry of Communication and Information.

The cabinet meeting also highlighted the issue of law enforcement against illegal lenders. “[The existing policies] have not been able to give a significant deterrent effect to perpetrators, ”said Wimboh.

OJK released a list of 121 legal and illegal online lending platforms registered in July 2021. OJK’s Investment Alerts Working Group has so far received 7,128 complaints and closed 3,365 illegal lending platforms .

Read: 120 online lenders not registered with OJK


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David A. Albanese