OJK Revokes PT Hewlett-Packard Finance Indonesia's Business License

Illustration (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) officially revoked the business license of PT Hewlett-Packard Finance Indonesia (PT HPFI) as stipulated through the Decree of the OJK Board of Commissioners Number KEP-30/D.06/2023 dated 18 December 2023.

"This revocation was carried out because PT HPFI has been subject to compliance enforcement in accordance with applicable regulations, namely not implementing recommendations on the results of the examination and not fulfilling the quality of the financing receivable," said Head of the Ministry of Literacy, Financial Inclusion and Communications OJK, Aman Santosa in his official statement, Wednesday, December 20.

Aman said, before the decision to revoke the business license, the OJK had imposed sanctions for freezing business activities (PKU) related to the recommendations of the results of the direct inspection.

Therefore, PT HPFI cannot comply with the provisions requiring companies to finance at any time maintain the Balance Rate of Financing Receivables (Outstanding Principal) with the category of quality of non-performing financing (NPF) after deducting the allowance for the elimination of financing receivables that have been formed by finance companies.

"For financing receivables with poor quality, in doubt, and traffic jams compared to total financing receivables (Outstanding Principal) balance, the highest is 5 percent," he explained.

According to Aman, OJK has provided sufficient time for PT HPFI to convey the fulfillment of NPF recommendations and provisions.

However, there was no resolution of the problem based on the recommendations of the results of the direct examination and the fulfillment of the NPF provisions.

Aman said that the supervisory measures carried out by the OJK above, including the revocation of PT HPFI's business license, were carried out in the context of implementing the provisions of laws and regulations consistently and firmly to create a healthy and trusted financing industry.

With the revocation of the business license in question, he continued, companies are prohibited from carrying out business activities in the field of finance companies and are required to settle their rights and obligations in accordance with applicable laws and regulations.

"In addition, companies are prohibited from using the word finance, financing, and/or words that characterize financing activities, in the name of the Company," he concluded.