The rise of illegal online lending practices that are troubling the public has received special attention from the President of the Republic of Indonesia (Ir. Joko Widodo).
He held a limited meeting to discuss loan management at the Presidential Palace, Jakarta. A limited meeting was held considering that many people use online loan services.
In addition, at the same time, there are many complaints from the public regarding the practice of borrowing with high interest and billing outside of ethics and regulations.
“The President emphasized that online loan management must be considered and implemented properly,” said the Minister of Communication and Information (Johnny G. Plate).
Based on data owned by the government, there are 68 million people who use Pinjol services. Turnover or loan turnover currently reaches more than Rp 260 trillion.
“However, considering that there are so many abuses or criminal acts in the online loan space, the president has given very firm directions,” he said.
He emphasized that in the meeting the Head of State asked OJK and the Ministry of Communication and Information to temporarily suspend the issuance of Pinjol’s company permits.
“OJK will conduct a moratorium on the issuance of fintech (financial technology) licenses for new legal loans and therefore Kominfo will also conduct a moratorium on the issuance of online system providers for loans, electronic system providers for new online loans,” he said.
The President of the Republic of Indonesia also asked OJK to temporarily suspend or moratorium on the issuance of Pinjol permits due to the rise of criminal acts committed by Pinjol companies, especially those that are illegal or not registered with the OJK.