YLKI Urges OJK Block Unregistered Fintech Companies

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  • TEMPO.CO, Jakarta - The Indonesian Consumer`s Foundation (YLKI) demanded the Financial Services Authority (OJK) shut down financial technology (fintech) companies that proved to violate consumers` right, based on either civil or criminal law. YLKI chairman Tulus Abadi said the demand was based on reports of consumers who were trapped after proposing online credit.

    “To date, YLKI receives more than 100 reports filed by fintech consumers related to terrors, daily fine, or soaring interest or commission,” said Tulus in a written statement, Jakarta, Wednesday, September 12.

    Tulus mentioned the violations were physical terror via phone calls or messaging application Whatsapp or SMS, a daily fine up to Rp50,000, or 62 percent interest of the total loan. Those are such an extortion to the consumers.

    He mentioned that YLKI urged OJK to immediately block unregistered fintech companies operating in Indonesia. Only 64 of more than 300 fintech firms listed in OJK. “It proves that OJK does not seriously monitor the issue,” said Tulus.

    The YLKI chief further appealed to the consumers not to carry out debts to unlicensed fintech companies and examine the requirements set by the firms.

    “We appealed to the victim of fintech company to file a report to the police considering that terrors and excessive collection of private data are such an alleged criminal act,” Tulus explained.