OJK Asks LPBBTI Organizers To Mitigate Risks Of Eradicating Online Gambling

JAKARTA - The Financial Services Authority (OJK) has asked the operator of the Information Technology-Based Joint Funding Service (LPBBTI) or fintech peer to peer (P2P) lending and related associations to carry out risk mitigation to support the eradication of online gambling activists in Indonesia.

"The mitigation measures are important to ensure that the distribution of financing through financial service institutions, including LPBBTI, is not used for online gambling activities that can harm the public or violate statutory regulations," said Head of Executive of Financing Institutions, Ventural Capital Companies, Micro Financial Institutions and Other Financial Services Institutions OJK Agusman as reported by ANTARA, Saturday, September 7.

Agusman said that the LPBBTI organizers and associations had been reminded and asked by the OJK through an official OJK letter to take the necessary steps and risk mitigation so that LPBBTI's financial products or services were not used as a means of economic crime such as online gambling.

In addition, OJK urges financing companies and LPBBTI to mitigate the increase in problematic credit, among others, through an assessment of the feasibility of funding (credit scoring).

It is projected that the level of problematic credit in finance companies and LPBBTI will be maintained until the end of 2024.

The risk profile of the financing company (PP) as of July 2024 is maintained with a gross non-performing financial (NPF) ratio of 2.75 percent, and net NPF of 0.84 percent.

At LPBBTI, the default rate or negligence in the settlement of obligations above 90 days (TWP90) as of July 2024 was maintained at 2.53 percent, better than in June 2024 which was recorded at 2.79 percent.

Previously, there was a joint declaration of eradicating online gambling involving the Ministry of Communication and Information (Kominfo), Bank Indonesia, OJK, as well as eleven national payment system associations and associations.

This declaration shows the full commitment of various parties in supporting the government's efforts to prevent and eradicate content and content of online gambling.

"As a more concrete step, Kominfo, BI, OJK and the 11 associations and associations will form a joint task force or team to orchestrate efforts to eradicate online gambling more massively, firmly, and indiscriminately," he said.

The eleven associations and associations who participated in this declaration included the Association of Regional Development Banks (Asbanda), the Association of Indonesian Guarantee Companies (Asipindo), the Indonesian Fintech Association (AFTECH), the Indonesian Joint Funding Fintech Association (AFPI), the Association of Indonesian Stock Companies (APEI), the Indonesian Payment System Association (ASPI), the National Bank Association (Perbanas), the Indonesian People's Credit Bank Association (Perbarindo), the Indonesian International Bank Association (Perbina), the Indonesian Payment Gateway Association, and the Association of State Banks (Himbara).