PWI asks journalists to help the public distinguish between legal and illegal loan sharks

PWI Pusat Chairman Akhmad Munir said the development of the digital financial industry must be followed by public literacy. (IST)

JAKARTA - The Indonesian Journalists Association or PWI Pusat together with the Indonesian Collective Funding Fintech Association or AFPI encourage the press to strengthen digital financial literacy in the midst of still rampant illegal online loans.

The encouragement was conveyed in a Journalism Workshop entitled "Pindar for Financial Inclusion, Quality Journalism for Community Protection" at the Aryaduta Hotel, Jakarta, Thursday, August 6.

The activity was held to increase journalists' understanding of legal and supervised Online Funding or Pindar by the Financial Services Authority or OJK.

PWI Pusat Chairman Akhmad Munir said the development of the digital financial industry must be followed by public literacy. Without sufficient understanding, the public is easily trapped by illegal online loans.

"We still hear and see various cases of people who are victims of illegal online loans. They are often trapped in very high interest rates, charged unethically, intimidated and even terrorized," said Munir.

According to Munir, the problem of illegal pawn loans does not stop at high debt and interest. The impact also touches unethical collection, intimidation, terror, misuse of personal data, data leaks, digital fraud, and social pressure on victims and their families.

Therefore, the public needs correct, clear, and reliable information. This information is important so that the public is able to distinguish legal Pindar organizers from illegal online loans.

Munir emphasized that the press has a strategic position in building national financial literacy. The press not only conveys information, but also carries out educational and social control functions.

"In the context of the digital financial industry, journalists are required to be able to explain complex issues in a language that is easy for the public to understand," he said.

He assessed that reporting on Pindar is not enough to just raise cases or controversies. The media also needs to explain how Pindar works, its benefits for the community and MSMEs, regulations, consumer protection, and how to avoid illegal loans.

"Thus, the press can help strengthen people's financial literacy while protecting public interests," said Munir.

AFPI General Secretary Entjik S. Djafar said financial literacy cannot be done by industry alone. Media, he said, is an important partner because it can convey information accurately, balanced, and easy to understand.

"With proper education, the public can distinguish legal and supervised Pindar services from illegal loan practices that are detrimental," said Entjik.

The workshop featured speakers from regulators, industry, and professional organizations. The material covers the online funding industry, consumer protection, and public financial literacy.

Head of the Micro Financial Institutions and Other Financial Services Institutions Supervision Department of OJK Adief Razali appreciated the collaboration between PWI and AFPI.

"The cooperation between AFPI and PWI is very likely to strengthen financial literacy so that our people are not deceived by illegal online loans," said Adief.

He called the press as a strategic partner in building a healthy financial services ecosystem.

The series of workshops was closed with the signing of a memorandum of understanding between the PWI Center and AFPI. The cooperation is aimed at strengthening education and dissemination of information about Pindar who is legal, safe, and responsible.