KPPU Calls Pinjol Dana Bagus To Danacita, Allegedly Salahi Aturan Gives Loans To Students

ILLUSTRATION OF DOK VOI

JAKARTA - The Business Competition Supervisory Commission (KPPU) summoned four companies or online financing institutions that had distributed loans to students.

The summons was due to the KPPU assessing that it was not in line with Law No. 12 of 2012 concerning Higher Education, so that it could cause unfair business competition.

"The four companies are PT Dana Bagus Indonesia or DANABAGUS, PT Cicil Solusi Mitra Teknologi or CICIL, PT Fintech Bina Bangsa or EDUFUND, and PT Inclusive Finance Group or DANACITA," said KPPU Chairman M Fanshurullah Asa as reported by ANTARA, Thursday, February 22.

From various sources, KPPU said the four companies had distributed loans to students with a cumulative value of Rp450 billion, with 83.6 percent of them being distributed by DANACITA.

According to Fanshurullah, various online student loan products that apply interest or various monthly costs that resemble interest with a certain loan duration are not in accordance with applicable regulations.

The KPPU said the loan given was suspected to be against the law, and could potentially result in unfair business competition.

"KPPU in accordance with its duties and authorities will enforce the law on companies or online financing institutions, if in the process it is proven to violate the rules and create unhealthy business competition in the student loan distribution market," he said.

In addition, Fanshurullah said that according to the rules, governments and universities should be obliged to fulfill the rights of students who are economically underprivileged in order to complete their studies.

One way to fulfill this right is done by providing interest-free loan which must be paid off after graduation or obtaining a job.

"For this reason, KPPU will soon summon various online financing institutions that have distributed the student loans, as well as invite the Ministry of Education, Culture, Research and Technology to obtain further information," said Asa.*