Illegal Loans Rise In NTT, Its Practices In Ngada And Kupang Stop SWID

Illustration. Polda Metro Jaya raided an illegal loan office in Kelapa Gading, Jakarta in October 2021. (ANTARA-Rivan A L)

The Financial Services Authority (OJK) said that the Regional Investment Alert Task Force (SWID) had stopped two illegal investment practices that were rampant in East Nusa Tenggara (NTT) Province.

"SWID NTT took steps to prevent and handle illegal investments and online loans (pinjol) in Ngada Regency and Kupang City," said Head of OJK for NTT Province, Japarmen Manalu in a written statement, Monday, June 19, which was confiscated by Antara.

He explained that the illegal investment and borrowing practices had been dealt with or stopped by SWID NTT, which consisted of nine ministries and institutions.

Japarmen said, since January 2023 until now, SWID NTT has continued to coordinate and provide 11 related education and loans and illegal investments.

Furthermore, he said that in order to deal with the issue of consumer protection of the financial services sector and encourage equal distribution of financial literacy and inclusion, the NTT OJK also encourages massive financial literacy and inclusion both face-to-face and online and through social media publications.

Until the end of May, he said, OJK NTT had carried out educational activities that reached around 11,700 people spread across various districts/cities, namely Kupang, Belu, Alor, Lembata, Ende, West Manggarai, and Kupang City.

In addition, education was held through dialogue on the radio, and the implementation of virtual smart competencies in Kupang City.

Japarmen said, on the other hand, his party also continues to encourage the Team for the Acceleration of Regional Financial Access (TPAKD) as a coordination forum for accelerating the expansion of regional financial access to support equal distribution of national literacy and finance.

Currently, he said, 23 TPAKDs have been formed in NTT consisting of provincial, city and 21 district levels.

He said these various efforts were to increase financial literacy and inclusion so that residents in NTT would not be trapped or victims of illegal investment practices.