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OJK seeks to clean up illegal fintech lending in Indonesia

Collaborating with Google and Kemenkominfo to remove illegal p2p lending apps on Google Play

The proliferation of online-based financing services, including p2p loans, making it difficult for the Financial Services Authority (OJK) to conduct screening and control in Indonesia. Currently, OJK has noted that there are more and more fintech lending applications on Google Play, even though their status is not yet registered.

According to the Chairman of the Investment Alert Task Force, Tongam L Tobing, Google is currently trying to collaborate with regulators to conduct screening.

Along with Kemenkominfo, currently the OJK is still conducting sweeps across the spread of online loans circulating on Google Play. OJK noted that currently there are 803 services  which has been blocked by the Investment Alert Task Force since 2018.

Most of these illegal services have servers in the United States, Singapore, China, and Malaysia.

"We have tried to cooperate with Google. If there is an application offer through fintech p2p lending on the Play Store we ask to be blocked," Tongam said as reported by Kompas.

AFPI as partner body

To accelerate this effort, OJK has pointing The Indonesian Joint Funding Fintech Association (AFPI) as an official body that accommodates information technology-based money-lending service providers in Indonesia. One of AFPI's main focuses is cleaning illegal and prevent the practice of digging holes and closing holes by the community.

Currently, the OJK records that there are around 99 applications for legal online loan service providers that are available registered as of February 2019. Angon cultivation investment service, which is currently having trouble, until now the status is still not registered at OJK.

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