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OJK Probes Java Banks for Allegedly Lending to Illegal Miners

26 February 2015 13:22 WIB

TEMPO.CO, Semarang - The Financial Services Authority (FSA) will investigate banks that are allegedly give loans to illegal mining companies. Santoso Wibowo, OJK head of regional office IV for Central Java and Yogyakarta, said the regulator will check whether the loan disbursement and proposal were done according to the rules.

Banks in Central Java are touted to be lending money to illegal miners, as admitted by a number of perpetrators.

Budi Sasmito, an illegal mining owner from Ungaran, said that banks have shown no objection in lending credits to illegal miners.

According to Budi, the banks actually wanted him to apply for a loan with a high value. Banks, he said, know that his work is illegal, as they surveyed his home and extraction site that he had been working on since eight years ago.

EDI FAISOL

Banking and FinanceOJK


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