Lack Of Financial Literacy Is The Cause Of Someone Stuck In Pinjol

Illustration - Victims of illegal 'online' loans show SMS threats he received from illegal loan applications (ANTARA)

JAKARTA - Senior lecturer and researcher at Multimedia University Nusantara Albertus Prestianta assessed that the lack of financial literacy and digital literacy is the cause of someone being trapped in illegal online loans (pinjol).

"Many of our people are trapped in illegal loans. Apart from the pressure on daily needs, it is also due to the lack of financial literacy and digital literacy of the Indonesian people so that they are often targeted or targeted for borrowing, especially those that are illegal," he wrote in a press release on Sunday.

This was conveyed in a digital literacy workshop with the theme "Stay away from Pinjol with Financial Literacy Caps in the Digital Age" which was held by the Ministry of Communication and Information with the National Movement for Digital Literacy (GNLD) Cybercreation in West Java.

Albertus explained that in the first period from January to May 29, 2023, there were 3,903 reports regarding the practice of illegal lending in Indonesia. In the same period, the total value of the circulation of loan money in Indonesia reached IDR 51.46 trillion.

He said that illegal loans often carry out practices that violate the rules. An example is to terrorize customers who borrow money if they are late in paying debt installments.

In fact, he said, not infrequently many cases of people committing suicide because they could not withstand the terror burden from illegal debt collectors.

In order not to get caught in the entanglement of illegal loans, a healthy financial planning is needed. Business and Marketing Lecturer UIN Sayyid Ali Rahmatullah Tulungagung Deny Yudiantoro said people who have a efficient lifestyle and make regular financial planning will be safer from being trapped, especially illegal ones.

A consistent lifestyle and financial planning are considered to be able to prevent people from debt.

He said there were a number of tips for making healthy financial planning, such as making budget plans, separating personal income and for businesses.

"Then you can also make financial notebooks, always set aside funds for emergency needs, and arrange the budget according to priority," he suggested.

Deny also suggested to Generation Z to start learning financial literacy from an early age. According to him, it is important for Gen Z to choose the right savings product or investment.

In addition, the "window shopping" lifestyle should also be reduced because it stimulates shopping for something that is not really needed. Lastly, it is by investing from an early age.

"Why do you need to invest from an early age? Because, we cannot predict future conditions. In addition, there are inflation factors and increase the value of wealth. Not to mention if there is an emergency need," he said.

Meanwhile, according to the Secretary of ICT Volunteers for Karawang Regency, Annisa Aprianti, the snare of borrowing often starts from excessive lifestyle patterns, including curiosity or not wanting to miss something (fear of missing out/FOMO).

In the digital era like today where the widespread use of social media makes all information run fast and fast. This is considered to make many people do not want to miss information or lifestyle.

FOMO can also be related to difficulties in making choices and determining priorities. When there are many choices of activities or events, people may find it difficult to choose the best and worry about choosing the wrong one," he said.

This digital literacy workshop is one of a series of activities in the Indonesia Makin Cap Digital program initiated by the Ministry of Communication and Information with the Cybercreation GNLD.