The Investment Alert Task Force Freezes 99 Entities And Close 105 Illegal Fintechs

Tongam Investment Vigilant Task Force Chairman L. Tobing. (Photo: Instagram @tongam_tobing)

JAKARTA - The Investment Alert Task Force (SWI) throughout June has frozen the business activities of 99 illegal entities and also closed 105 illegal peer to peer lending fintechs that offer loans to the public through applications, social media and text messages on cell phones.

Investment Alert Task Force Chairman Tongam L. Tobing said the entities were all unregistered and licensed by the Financial Services Authority (OJK), which is the licensing, regulatory and supervisory authority for peer to peer lending services.

Furthermore, Tongam said, the existence of this illegal fintech lending was very large. Not only can it be detrimental to society, but the government can also be disadvantaged in terms of tax revenue.

"The police are already part of the Investment Alert Task Force. Prompt action is needed to prevent illegal investment and illegal fintech actors from operating again, which could harm the public," he said in a virtual press conference, Friday, July 3.

According to Togam, all the findings of the investment alert task force were coordinated with the National Police Criminal Investigation Unit by providing a letter of information report to carry out legal proceedings if a criminal act was suspected. This is done, with the hope that it can provide a deterrent effect to the perpetrators.

Tongam explained that illegal fintech loans are very detrimental to the public because they impose high interest and fines, the loan period is short and they always ask to access all contact data on their cellphones or cellphones.

According to Tongam, this illegal fintech is very dangerous, because the customer data that is accessed can be shared and used to intimidate during collection.

"We ask the public, especially when making online loans, never to approve or allow contacts or cellphone numbers, or data to be accessed by these actors. Because of what? In this way we can reduce the prevalence of illegal fintech lending offers, "he explained.

Tongam explained, the rampant illegal peer to peer lending of fintech throughout June 2020 was due to deliberately taking advantage of the weakening condition of the community's economy due to the COVID-19 pandemic.

"They are targeting people who are currently experiencing economic difficulties and need money to meet basic or consumptive needs," he said.

According to Tongam, the steps taken by the investment alert task force and related parties will not succeed in eradicating the existence of illegal fintech if there is no participation from the community.

"This activity will certainly be very successful with the participation of the community. Our community continues to educate us so that they do not participate in illegal fintech lending loans and illegal fintech lending investments. Because we see that this offer is like supply and demand. If we influence the community, we I'm sure the supply will also decrease, "he said.

2,591 Entities

The total number of illegal peer to peer lending fintechs that have been handled by the Investment Alert Task Force from 2018 to June 2020 is 2,591 entities.

Togam explained that his party had also stopped 99 business activities that were suspected of carrying out business activities without permission from the competent authority and had the potential to harm the community.

"We are restricting illegal investment activities and we are also blocking the application website from this illegal investment through Kominfo. We also submit information reports to Bareskrim and coordinate with various parties to prevent illegal fintech lending or illegal investment," he said.

Of the 99 entities, 87 of them conduct illegal futures / forex trading, two illegal direct selling, three illegal cryptocurrency investments, three money investments, and four others such as business education and training, business consulting, money investing without permission, online trading using MLM schemes or money games, to debt service without permission.

"If there is an offer with a very high yield, check two Ls, namely legal and logical. Legal means asking for the permit. Permit for legal materials, products and license to operate. If there is no permit, don't participate. Then logically, see the rationality of the payoff whether it is rational. , "he explained.

Meanwhile, the Investment Alert Task Force also conveyed information that the Sigap Prima Astrea Cooperative had been given normalization because it did not carry out online loan activities outside of its members and had legal entity legality in accordance with applicable regulations.