In addition to raids, the government conducts cyber patrols to regulate illegal lending

The Indonesian Joint Funding Fintech Association (AFPI) announced a reduction in the upper limit on borrowing costs by up to 50 percent to no more than a flat interest rate of 0.4 percent per day. This is in an effort to put the brakes on the potential dangers of illegal online loans (pinjol).

The cost of this loan already includes the total interest, borrowing costs and other costs excluding late fees. This is to attract people to borrow only from official and registered loan providers, and not to be caught in illegal loans.

From the side of the government as the policy maker, illegal borrowing is being brought under control. The Ministry of Communication and Information (Kemenkominfo) for example, since the era of the Minister of Communication and Informatics Rudiantara to Johnny G. Plate, has blocked more than 4,000 illegal loans.

The Minister of Communication and Information, Johnny G. Plate, said that his party is currently conducting 24-hour surveillance in cyberspace, including Google and other digital platform managers.

Access was terminated based on a number of complaints received by the Ministry of Communication and Informatics from various parties, both from the public, ministries, and related institutions, including the Financial Services Authority (OJK) and the Police.

“From 2018 to October 26, 2021, Kominfo has cut off access to 4,906 fintech (financial technology) content or online loans that violate laws and regulations,” said Johnny.

He added that illegal pinjol was on a number of platforms. Starting from the site, the Google Play Store application store, file sharing sites and social media. In addition, Kominfo received accounts related to illegal lending services. As of October 2021 the report reached 5,327 account statements.

In addition to the Ministry of Communication and Informatics, the Investment Alert Task Force also continues to strive to eradicate illegal lending by closing 116 illegal lending entities found in cyber patrols that are still operating on the internet and applications on cellular telecommunications networks.

As a follow-up to the President’s directive, Kominfo has conducted a moratorium on the registration of the Electronic System Operation (PSE) for Online Loan Financial Services.

“The implementation of this policy will accompany the moratorium carried out by the OJK on applications for registration of new online loan service providers since 2020,” said Johnny.

The chairman of the Investment Alert Task Force, Tongam L. Tobing, in his written statement, said that his party also continues to carry out cyber patrols or cyber patrols and closes illegal lending applications and websites that are still operating, so that the public does not become victims.

“SWI apart from closing the operation of illegal lending through the Ministry of Communication and Information has also submitted a list of illegal loans to the Police for legal action,” he said.

SWI also supports the firm action of the Police, who have arrested a number of illegal lenders in various regions because without the arrests of the perpetrators, illegal lending operations will still appear by changing their names or creating new applications.

“Strict action against the perpetrators of this illegal crime must continue to be carried out to protect the community,” Tongam continued.

For those who really need loan services, there are many names that are officially and legally registered. Referring to the official website of the Financial Services Authority (OJK), there are 104 legal lending companies as of November 4, 2021.