JAKARTA - Coordinating Minister for Political, Legal, and Security Affairs (Menko Polhukam) Mahfud MD emphasized that the Government will not tolerate illegal online loan service providers or online (pinjol) because they have a detrimental impact on the community.
"Illegal loan sharks are actually moneylenders who are transforming in the digital era, we need to be careful to eradicate them. In addition to the losses that arise, there is also an ecosystem that is considered mutually beneficial from this practice," Mahfud said in a written statement quoted by Antara, Friday, February 11.
Mahfud said the government, through a number of relevant ministries and non-ministerial government institutions (K/L), would continue to make joint efforts to eradicate and take firm action against illegal borrowing practices that harm the community.
Harmful practices carried out by illegal borrowing include imposing higher loan interest rates from banks, providing unsecured loans, and giving consent to access to personal data as a prerequisite for loans.
These illegal lending services are then often misused by service providers, especially financial institutions that are not registered and are not supervised by OJK and related associations.
According to Mahfud, the closure of access or blocking of illegal loans by the Ministry of Communication and Information is part of an administrative action that the state can take. This is intended so that the space for illegal borrowing is increasingly closed and there are no more victims.
"This step must be supported by opening access to public complaints that are easy to reach. The active participation of the community in reporting this illegal act is an integral part of the loan handling policy that must be developed by the state," explained Mahfud when he was the keynote speaker for the web seminar " Legal or Illegal Online Loans: Community Needs and Law Enforcement" organized by OJK, Friday.
Meanwhile, regarding legal loan services, which are officially licensed by the OJK, they must receive support from various stakeholders, said the former chairman of the Constitutional Court.
In addition, the government also encourages legal loan service providers to comply with rules and ethics in billing, provide low and affordable interest rates, and provide good service to the community.
"The government will also encourage the formation of a law related to the digital financial services sector and the ratification of the Personal Data Protection Bill as an effort to protect citizens. This data protection is important to protect the data of victims who are often exploited by illegal loans," he said.
The state will also provide protection in terms of civil law and criminal law, by providing space for the parties if there is a dispute or dispute and taking firm action against behavior that harms citizens.
The application of criminal law in handling illegal loans should be a last resort, but criminal law enforcement against big perpetrators is needed as a shock therapy in order to have a deterrent effect, said Mahfud.
Law enforcement must be carried out consistently and be able to reach funders, corporations, and important actors who organize the illegal lending practice.
"Law enforcement should not only target subordinate employees, who only act technically operationally; considering this illegal lending practice involves a lot of networks at home and abroad, both from the perpetrators, server providers, or providers of funds," said Mahfud.
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