Task Force on Reinvestment Alert Blocks 231 Illegal P2P Lending Entities

The Investment Alert Task Force has again blocked 231 application entities fintech p2p lending illegal earlier this year. When totaled, there are 635 entities that has been blocked by the Investment Alert Task Force since 2018.

Not only local, the majority of them come from China, Russia, and Korea; some even not detected the location of the server. Most of them are in the consumer credit segment.

The chairman of the Investment Alert Task Force, Tongam L Tobing, said that the increasing number of naughty perpetrators made his party have to take more decisive prevention and handling.

Some of the efforts made are to announce the identity p2p loans illegal to the public; apply for website and application blocking regularly to the Ministry of Communication and Informatics; cut off access to finance by urging banks to refuse account openings or Existing without OJK recommendation.

In addition, the task force also asked Bank Indonesia to prohibit fintech payment systems facilitate p2p loans illegal; submit information reports to Bareskrim for law enforcement processes; increase AFPI's role for handling.

"The most important thing is to educate and socialize to the community on an ongoing basis not to use fintech illegal, because the key is there," explained Tongam, Wednesday (13/2).

These efforts are expected to reduce the movement of illegal players to take advantage with bad ones. The reason is, making an application and releasing it to Google Play is quite easy. When it is blocked, they re-create an application with a similar name.

They also use various modes to trick the public into using their services, such as the quick disbursement process by uploading their ID cards. But behind the convenience, this illegal application traps with high interest and fines. If not fulfilled, do not hesitate to make unethical billing.

"There is one case that we have published in Bareskrim, there are three suspects who were arrested for a billing intimidation case. This will continue."

Community education

As a form of sustainable consumer protection, the Investment Alert Task Force provides a number of tips for people who want to make loans. First, borrow from services that have been registered with OJK; then borrow according to need and ability; borrow for productive purposes; and understand the benefits, costs, interest, term, penalties and risks.

Information on the list of entities registered or licensed by the OJK can be found on the official OJK website which is regularly updated.

So far there are 99 companies p2p loans registered and licensed by the OJK. As for the companies that are applying for permits, it was revealed that there are around 25 companies that have already submitted their documents.

However, OJK is still waiting for AFPI to make a full day training class that must be attended by directors and commissioners as one of the requirements for applying for a business license.

"We are still waiting for AFPI's readiness for the training class. Later there will be proof of certificates that must be shown to the OJK that they have attended the class. fair for the process of documents that already exist," said OJK's Director of Licensing and Fintech Supervision Hendrikus Passagi.