Pindar Becomes A Digital Debt Trap, Commission XI Supports KPPU To Take Strict Action On The Practice Of The Pindar Cartel

JAKARTA - Deputy Chairman of Commission XI of the Indonesian House of Representatives, Fauzi Amro, expressed his appreciation for the firm and proactive steps taken by the Business Competition Supervisory Commission (KPPU) in cracking down on alleged flower cartel practices in the fintech industry, especially online loan services (pindar).

According to Fauzi, if it is true that there is a cartel practice that harms the community, then this is a serious violation of the principles of healthy business competition.

He said that the KPPU's steps to take action indiscriminately should be appreciated, during the process it was carried out in accordance with the principles of due process of law, and supported by strong and legally valid evidence.

"We don't want there to be a practice of neglect of oligopoly or an unhealthy agreement that ultimately burdens the people, especially the lower middle class who are the main consumers of pinning services," he told reporters, Friday, August 1.

Regarding the pindar interest policy which is currently limited to a maximum of 0.3 percent per day by the Financial Services Authority (OJK), Commission XI considers that there are still many people who feel burdened by the accumulation of high interest and fines, especially on short-term loans.

Thus, it is necessary to carry out a thorough evaluation of the pindar interest policy which is currently still considered too high, including strengthening the monitoring mechanism, increasing transparency in effective annual interest presentations (effective annual rate), as well as public education so that people are not trapped in loans that exceed their financial capacity.

Fauzi also emphasized the importance of ethics and social responsibility in the growth of the smart industry and reminded the industry not to develop into a systemic digital debt trap through cartel practices.

"So cooperation between OJK, KPPU, and law enforcement officials is needed to supervise and fix this industry as a whole," he added.

He emphasized that Commission XI of the DPR RI will continue to encourage the strengthening of regulations and supervision in the financial services sector, focusing on consumer protection and the creation of economic justice, including the evaluation of the maximum daily interest rate which is currently still considered too high and burdens the community.

As is known, KPPU will hold its inaugural trial for the alleged loan interest cartel case in the loan industry on August 14, 2025.

A total of 97 online loan providers (pindar) were named as reported ones who set a high daily interest ceiling. Daily interest is determined jointly through an internal or exclusive agreement made by industry associations, namely the Indonesian Joint Funding Fintech Association (AFPI).

The KPPU said the reported changed the loan interest rate which included loan costs and other costs to a maximum of 0.8 percent per day to 0.4 percent per day in 2021. The initial trial agenda aims to convey and test the validity of the findings, as well as open up space for further proof.

If proven to have violated, business actors can be subject to administrative sanctions. Penalties in the form of fines of up to 50 percent of the profits from violations or up to 10 percent of sales in the market concerned and during the period of violations.