Bank Indonesia Bars Non-bank Firms from Helping Illegal Online Lending Services

TEMPO.CO, Jakarta - Bank Indonesia or BI is set to send a letter to payment service providers or non-bank financial companies regarding rampant illegal online lending platforms. BI will convey three messages, including prohibiting them from cooperating with or facilitating illegal online loan services.

“After this, we will take immediate steps. One of which is submitting a letter,” said BI Governor Perry Warjiyo at the signing event of a joint statement on the eradication of illegal online lending in Jakarta, Friday, August 20.

The Financial Services Authority (OJK), the National Police, the Ministry of Cooperatives and SMEs, and the Ministry of Communication and Information also took part in the joint statement.

Perry said his side would emphasize the precautionary principle of companies in carrying out its obligations to fight money laundering, prevent terrorism financing, and adopt the Know Your Customer (KYC) principle.

Bank Indonesia will also ask financial companies to bolster financial literacy and hold active communication programs.

Perry further underlined that illegal online lending was an illicit activity outside the financial system. He said this did not only disrupt efforts to revive the national economy, but also create legal and social problems. “This is what we have to fight together,” he said.

Read: OJK Discloses Two Illegal Online Issues during Cabinet Meeting

FAJAR PEBRIANTO