Over 1,000 illegal Fintech P2P Lending services closed: OJK

The public are advised to use P2P lending services registered at OJK,

Medan, N Sumatra (ANTARA) - The Financial Service Authority (OJK) disclosed more than 1,000 illegal Fintech Peer to Peer (P2P) lending services across Indonesia have been closed or blocked.

"The public are advised to use P2P lending services registered at OJK," OJK Deputy Commissioner for Institutes and Digital Finance Sukarela Batumanggar said in Medan, capital of North Sumatra Province, on Tuesday.

He made the remarks during a focus group discussion (FGD) with various professionals on strategy and digital transformation steps in the banking industry and knowledge sharing about Fintech.

He predicted that 283 online-based P2P lending firms are operating in the country . However, only 127 of them are registered at OJK.

Consumers who are harmed by fintech firms can report to the Fintech Lending Players Association (AFPI), even if they are registered at OJK, he said.

OJK has reminded the association of its duty to give its members coaching about how to develop their business, he said.

"If they have received the coaching but are still delinquent their permit can be revoked," he said.

When the public are harmed by illegal fintech services they can report to the OJK Vigilance Task Force, he said.

According to OJK, loans distributed through P2P lending platforms reached Rp 20 trillion last year or 681.25 percent higher than the figure in 2017, which was recorded at Rp 2.56 trillion.

Source: ANTARA News

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