Gov’t to Take Strict Action on Illegal Online Lending

Minister of Communications and Informatics Johnny G. Plate delivers press statement with Head of OJK Board of Commissioners after attending a meeting on online lending at the Presidential Palace in Jakarta, Friday (15/10)

President Joko “Jokowi” Widodo has ordered his Cabinet to pay attention to online lending and manage it well.

“During an internal meeting with the President, we specifically discussed online lending management. The President underscored that we must pay attention to lending management and carry it out well,” Minister of Communications and Informatics Johnny G. Plate said after attending the meeting on online lending, Friday (15/10).

According to Johnny, during the meeting, it has also been decided that the Financial Services Authority (OJK) will temporarily suspend license issuance for online lending.

“Taking into account that so many criminal acts occur in online lending activities, the President gave strong directives. First, the OJK will implement a moratorium on fintech license issuance for new legal online lending [companies],” he said.

In line with the directive, Johnny stated that Ministry of Communications and Informatics will also implement a moratorium on electronic system operator license issuance for new online lending platforms.

“We will take strict, uncompromised actions to free digital spaces from illegal or unregistered online lending practices,” he said, adding that since 2018 his Ministry has closed or terminated access of 4,874 illegal online lending contents spread in various platforms.

“In 2021 alone, 1,856 [contents] spread on websites, Google PlayStore, YouTube, Facebook, Instagram, and file sharing platforms have been taken down,” he said.

Johnny further said that strict actions will also be taken by the Indonesian National Police, especially on criminal acts related to online lending.

“Ministry of Communications and Informatics will clean up digital spaces, take down [content] firmly and fast. At the same time, law will be enforced by law enforcement officers. In this case, the National Police of the Republic of Indonesia will take strict actions on all criminals involved in unregistered online lending because it affects lower socioeconomic groups, especially people from ultra-micro and MSME sector. We will not give room for it and compromise,” he remarked. (MAY/UN) (DH/EP)