OJK Boss Says Illegal Online Loans and Online Gambling is the Illegitimate Child of Digital Finance

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar said that the public should remain vigilant against illegal online loans (pinjol), fraudulent investments, and online gambling (judol) which are the illegitimate children of the digitalization of the financial services sector.

According to Mahendra, digitalization in the financial services sector is like a double-edged sword. namely it can facilitate access, encourage financial inclusion and deepen the financial market, but on the other hand it can bring potential risks that are detrimental to the country.

"We often hear about victims of illegal online loans, from fraudulent investments, how does online gambling affect if you want to say it is the illegitimate child of digital finance," said Mahendra in BUNDAKU Financial Education, Tuesday, June 25.

Mahendra said that his party could not avoid the dangers of digitalization. However, OJK will continue to be committed to strengthening community resilience or resilience through financial literacy and inclusion. This is the basis for increasing literacy for the entire community.

"We are ready to fully support all programs related to financial literacy. And in this case, specifically making BUNDAKU (Financially Capable Mothers, Children and Families) as a basis for us to expand the community massively to increase literacy programs for our entire nation and country," he said.

Mahendra said that based on the records of credit distribution figures to MSME financing, the level of compliance with repayment is much higher if given to women. In addition, providing access to literacy and inclusion to women means increasing the resilience of their family members and this must be a priority.

"The basis, among others, is the most important mother. This is an addition, benefit, use and multiplier effect, if strengthening is carried out on literacy and inclusion from mothers. So, all of its resilience occurs to the entire family in addition to the compliance to make repayments of financing or credit that is carried out," he said.