BCA Supports OJK Plan To Use Social Media As Indicators For Credit Assessment

EVP Corporate Communication & Social Responsibility BCA Hera F. Haryn. (Photo: Doc. Antara)

JAKARTA - PT Bank Central Asia Tbk (BCA) supports the Financial Services Authority (OJK) plan to use social media activity data (medsos) and electricity bills as alternative credit assessment indicators.

BCA's EVP Corporate Communication & Social Responsibility Hera F. Haryn said the Company supports and will immediately communicate with all stakeholders regarding the development of the regulation.

"We, of course, as banks, will coordinate, we will support what the government's policies think and of course we will be willing to communicate with all stakeholders, then also of course with regulators and of course this discussion if it will be needed later, we will certainly follow the direction of the regulator," said Hera in the Indonesia Knowledge Forum XIII-2024 held by BCA in Jakarta, quoted from Antara, Tuesday, November 12.

OJK is currently drafting an OJK Regulation (RPOJK) for Alternative Credit Ratings (PKA) as a follow-up to Regulatory Sandbox results that set an Alternative Credit rating business model to be regulated and supervised by the OJK.

According to Hera, the use of alternative data such as social media activities and the history of electricity bills as indicators of credit assessment can also be used for several other sectors outside of banking. This is also considering the social media that is often used for marketing.

"So in our opinion, we can comprehensively go to many sectors and maybe there has been an initial study that the regulator has so that it finally issues a new formulation for public assessment," he said.

During the launch of The 6th Indonesia Fintech Summit and Expo (IFSE) 2024, Monday (11/11), Chief Executive of the Financial Sector Technology Innovation Supervision, Financial Assets and OJK Crypto Assets Hasan Fawzi said that his party was developing regulations regarding alternative credit rating (PKA).

"We are also preparing a full licensing regulation for this PKA, an Alternative Credit rating. So if the regulation is issued later, they will be the same as other financial services business actors, will apply for a full business license to the OJK through the POJK arrangement," Hasan said.

The RPOJK will regulate the implementation of PKA business activities related to principles and scope, provisions for business licensing, institutions, governance, implementation of PKA, supervision, and other aspects related to PKA.

He explained that there are three main functions in the presence of PKA, namely presenting the quality of the credit score of each individual and micro, small and medium enterprises (MSMEs).

"Many of our people don't have historical credit data, it's a shame if they are later not served. Well, that need emerged and was answered by the presence of this alternative credit rating institution. This opens accessibility to services that they may not have served, because they don't have historical scoring data," he said.

PKA can also expand business access for financial services institutions in lending, including for those who have not been served so that they can open a new market segment.

In addition, the presence of PKA will be able to improve the quality of credit from financial service institutions that distribute credit to individuals and MSMEs.

Dan (benefit) yang terakhir adalah untuk meningkatkan kualitas dari kreditnya sendiri. Dengan adanya informasi credit scoring yang baik, kemudian lembaga pembiayaan ini juga akan berpotensi untuk mengurangi probility of default (kemungkinan gagal bayar) atau tingkat utang yang bad debt-nya, katanya.

With the credit scoring which can encourage credit disbursement from financial service institutions that are increasingly reaching the community, it is hoped that the public can switch to licensed online loan providers from the OJK and not use illegal loan services.