OJK in An Effort to Remove Illegal "Fintech Lending" in Indonesia

The rise of online based financial services, including p2p lending, has put more pressure to Financial Service Authority (OJK) in sorting and managing in Indonesia. Currently, OJK has recorded many unregistered fintech lending app in Google Play.

Tongam L. Tobing, Head of Investment Awareness Unit said that Google is now trying to collaborate with the regulators for qualification process.

Along with the Ministry of Communication and Informatics (Kemkominfo), OJK is still exploring the online loan distribution on Google Play platform. There are 803 illegal fintech lending recorded and blocked by Investment Awareness Unit since 2018.

Most of the illegal services have server base in US, Singapore, China, and Malaysia. "We've tried to partner with Google. If there's any app offer through p2p lending fintech on Play Store should be blocked," he said as quoted by Kompas.

AFPI as partner

In order to speed up the business, OJK has appointed Indonesia's Fintech Association (AFPI) as the official partner to lead all kinds of IT based financial loans in Indonesia. One of its focus is to remove any illegal fintech lending and avoid being in debt to pay other debt.

Currently, OJK has listed 99 apps providing legal loan online valid per February 2019. The cultivation investment, Angon, that having a difficult time also haven't registered in OJK.

– Original article is in Indonesian, translated by Kristin Siagian