OJK Pledges to Announce Names of Illegal Fintech Firm

TEMPO.CO, Jakarta - The Financial Services Authority (OJK) committed to monitoring legal and registered financial technology (fintech) companies of peer-to-peer lending or online loan as an effort to maintain the security for consumers.

“OJK monitors online loan firms through reports submitted to the association,” said OJK’s head of consumer operations unit Yulianta in Jakarta, Wednesday, December 18.

Yulianta explained OJK Investment Task Force would control and take actions against illegal fintech companies by announcing the names to the public.

“The Investment Task Force always update the list of illegal investment firms. The team can issue a warning notice letter, close down the business, and revoke its permit or registered number. If the permit is annulled, we will announce its name to the public,” said Yulianta.

The Indonesian Joint Funding Fintech Association (AFPBI) admitted that illegal online lending companies existed in public. Thus, the association appealed to all people to clarify the legal status of fintech firm to OJK or AFPBI.

AFPBI official Entjik Djafar underlined that registered fintech companies must follow the code of conduct which managing the business principles as set by the corporate.

“Currently, fintech company increases in number because of the public's high interest, particularly those from micro, small, medium enterprises (MSME) which are unbanked business,” he said.

Based on AFPBI data, users of peer-to-peer lending or online loan recorded over two million, and the total loan provided by legal fintech companies amounted to Rp15 trillion per September 2018.

ANTARA