Illegal Borrowing Makes More Uneasy, Even Though Since 2018 Kominfo Has Blocked Thousands Of Applications

Minister of Communication and Information (Menkominfo) Johnny G. Plate

JAKARTA - The Ministry of Communication and Information (Kemkominfo) continues to increase cooperation with the Financial Services Authority (OJK), Bank Indonesia, and partner ministries and institutions in cleaning up Indonesia's digital world from the presence of unlicensed or illegal financial technology or fintech.

"From 2018 to October 10, 2021, access to 4,873 online fintech content has been cut off, spread across various platforms," said Minister of Communication and Information (Menkominfo) Johnny G. Plate, quoted from the Kemkominfo website, Wednesday, October 13.

A total of 4,873 online fintech content is spread across various platforms such as websites, marketplaces, applications, social media, and data sharing services. Johnny emphasized that the government and business partners will not provide space for any fintech content that is not in accordance with applicable laws and regulations.

“We both have a duty not to give space to illegal content or content that is not in line with the laws and regulations. So that our digital space becomes more useful for the interests of our society, and is used optimally for the progress of our economy," he said.

The Minister of Communication and Information hopes that law enforcement on the rise of illegal content can encourage the use of digital platforms that are increasingly useful.

"We hope that law enforcement in the digital space like this will encourage the splendor of our fintech so that it is put to good use, used for the benefit and development of our national economy and finances," he said.

Police Chief Instructions

The National Police Chief, General Listyo Sigit Prabowo, instructed all police officers to take firm action against illegal online loan providers (Pinjol), or peer to peer lending (fintech P2P lending) financial technology that has harmed the public.

This decisive action, said Sigit, was also a direct instruction from Indonesian President Joko Widodo (Jokowi), who paid special attention to Pinjol's crime. This is because it has harmed the community, especially in the midst of the COVID-19 pandemic.

"Illegal Pinjol crimes are very detrimental to the community, so special handling steps are needed. Carry out eradication efforts with Pre-emptive, Preventive and Repressive strategies," said Sigit in briefing the Regional Police, October 12.

Pinjol criminals, continued Sigit, often provide promotions or offers that make people tempted to use these services. Thus, this is one of the causes of the many victims of Pinjol.

"It must be handled immediately to provide protection to the community," said Sigit.

In the midst of the COVID-19 Pandemic situation, according to Sigit, Pinjol organizers also took advantage of the situation of the people whose economy was affected. So, many residents are tempted to use illegal Pinjol services.