TEMPO.CO, Jakarta - The Financial Services Authority (OJK) in a press conference held virtually on Thursday announced that it had closed at least 5,861 illegal online investments and peer-to-peer or P2P lending services since 2017.

OJK’s executive head of Financial Services Business Actors, Education, and Consumer Protection Supervisor Friderica Widyasari Dewi elaborated on it. “The Investment Alert Task Force, in collaboration with ministries and other institutions since 2017, has closed 1,100 illegal investments, 4,482 illegal online loans (pinjol), and 251 illegal mortgage services.”

Despite the massive amount of closures, Friderica acknowledged that similar businesses continue to emerge. She also said the public’s lack of financial literacy had helped prosper such illicit businesses.

“[These businesses] often promise consumers things that are logically unacceptable. It’s worsened by the fact that they (consumers) are not willing to check whether these are legal entities or not,” she explained.

Due to these conditions, OJK has proactively reached out to consumers by educating people in general regarding illegal investments. The agency also has its task force that is overseen by the latest Law on Financial Sector Development and Strengthening (UU PPSK).

“It started as an MoU between agencies but now has been turned into Law. This is an astonishing means of strengthening,” she said.

MOH KHORY ALFARIZI

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