Saturday, 19 January 2019

Govt to Sanction Online Lending Firm over Data Misuse

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  • TEMPO.CO, Jakarta - Financial technology (fintech) lending firm or online lending service that misused consumer`s data was threatened with fine and penalty sanction over data misuse. The statement was conveyed by Semuel Abrijani Pangerapan, Director-General of Applications and Informatics at Communication and Informatics Ministry, following the increase of public complaints.

    “The severe sanction is on OJK (Financial Services Authority). We will first see the violation, if there is a higher charge, we will submit the case to the court, as based on Law of ITE (Information and Electronic Transactions) Article 32,” said Semuel in the ministry building in Jakarta on Thursday, November 8.

    Taking consumer’s phone contact data without notice, according to Semuel, was one form of data misuse. Thus, it was required verification as that in offline lending service.

    Read: IMF-WB Meeting Agrees on Bali Fintech Agenda

    The Article 32 of ITE Law, in general, stipulated that an individual who deliberately and without rights transmitting and transferring electronic information belonging to other people would be charged with eight years imprisonment and or fine of Rp2 billion at most.

    “We will send a warning letter if the platform is illegal, and that cannot be downloaded via Apple App Store or Google Play Store,” said Semuel, adding that the ministry would deal with data misuse case, while OJK on the permit.

    The ministry, Semuel added, had established a team of investment awareness to review fintech platforms. According to him, the team had shut down more than 669 illegal fintech services since 2012.