OJK: The Young Generation Sometimes Not Wise In Accessing Financial Products

JAKARTA - Chief Executive of the Behavior Supervisory of Financial, Education and Protection Business Actors of the Financial Services Authority (OJK) Friderica Widyasari Dewi said that the younger generation is sometimes not wise in accessing legal financial products.

"Now there are many financial products that are digital. Now, if it's dangerous for young people, they access illegal financial products, which are very easy to find online. Even if they access legal ones, sometimes they are not wise in their use," he said at the Financial Education Activity for High School/equivalent students at Indonesia Banking School, Jakarta, quoted from Antara, Monday, January 22.

According to him, young people are actually able to easily surf the digital world, which means they have sufficient understanding of digital literacy. However, what is a problem is that they still lack understanding of digital financial literacy, among others, related to accessing financial products.

He said some of them used online loans (pinjol) illegally, but access to financial products buy now pay later (BNPL) is rife among young people.

Many young people then use it, sometimes just to eat with their girlfriends, sometimes to buy clothes. They don't know that it will then mount into the debt they have to pay for, "said Friderica.

Debts that accumulate due to the use of BNPL will also have an effect on the Financial Information Service System (SLIK) of each debtor, so that the younger generation finds it difficult to find work because it has a bad score on LYK.

He also shared that there is a bank that provides People's Housing Credit (KPR), but many young people cannot get the service because they have debts that accumulate in financial products such as BNPL, even though their debt is only around Rp. 300 thousand-Rp. 500 thousand.

In addition, there are also consumers from financial products such as BNPL who have monthly credit and have an installment of 95 percent of their monthly income. This means that if the debtor has an income of Rp. 10 million, then Rp. 9.5 million is used to pay off debts.

Seeing the facts related to financial problems, his party is intensifying financial literacy for young people. Then, OJK also encourages all financial operators to prioritize consumer well-being, not just focusing on increasing sales of financial products.

"So, don't let that person be encouraged to use products, but in the end it is not for welfare, but instead then plunge them. So, young people should not only be able to use it, but must also be taught so that they are wise to use it," he said.