JAKARTA, JAKTIMES.COM- The issue of online loans (pinjol), especially illegal ones in Indonesia, which have greatly troubled society, has once again caught the attention of Fauzi H. Amro, MSi, a member of the XI Commission of the Indonesian House of Representatives (DPR-RI). This Nasdem Party politician has even prohibited borrowers of illegal online loans from making payments.
“We urge individuals who have borrowed money from illegal online loans to know that they are not obligated to repay their debts. We forbid them from paying or returning the money they borrowed from illegal online lenders. Because these lenders operate without permits, illegally, and their interest rates are unreasonable, they can reach up to 40 percent per month, and in some cases, even 500 percent. Not to mention their violation of privacy data, which should not be allowed and is prohibited by law,” said Fauzi in Jakarta (14/07) when responding to the issue of online loans that has recently greatly troubled society.
Fauzi explained several reasons underlying this call. Firstly, illegal online loans are not authorized by the Financial Services Authority (OJK), and therefore, they violate the regulations governing the financial sector. People should not be forced to repay debts originating from entities that are not legally valid.
Secondly, the interest rates imposed by illegal online loans are often irrational or excessively high and do not comply with the provisions established by the OJK. People should not be trapped in an unfair and detrimental cycle of debt.
Thirdly, operators of illegal online loans often violate individuals’ privacy data in unethical ways. People have the right to be protected from misuse and violation of their privacy.
Fauzi revealed that, based on information from the OJK, the number of circulating illegal online lenders in the public has reached over 3,500.
This University of Indonesia postgraduate alumnus also urged the authorities, including the OJK, the Police, and other relevant agencies, to enhance law enforcement efforts and to close down and prohibit the operation of illegal online loan providers. Additionally, they encourage the public to report suspicious illegal online loan practices to the authorities so that appropriate actions can be taken promptly.
On the other hand, for individuals who borrow from legal online lenders or those who have obtained permits from the OJK, Fauzi suggested that they should repay their loans according to the OJK’s provisions.
Fauzi stated that the presence of financial technology (fintech) or online loans aims to facilitate access to capital for micro, small, and medium-sized enterprises (MSMEs), society, and the digitization of access to capital, thereby helping to enhance financial inclusion in the country. Moreover, the presence of fintech indirectly accelerates financial activities in the country, leading to improved domestic financial transactions.
“But in reality, they are like leeches preying on society, taking advantage of the low financial literacy among the people, enticing them with the promise of quick disbursement within 1 or 2 hours. The presence of online loans, both legal and illegal, is greatly troubling to society. There are cases of married couples divorcing, and there have even been suicides because of online loans. The interest rates can reach up to 144 percent per year. This is similar to a parasite and a predator. Not to mention the violations of privacy data committed by online loan operators,” he added.
According to Fauzi, in accordance with OJK regulations, legal online lenders are not allowed to share privacy data or request personal information, including Camera Microfon Location (CaMiLan), or involve a process that takes only one or two hours for disbursement. It takes a day or two to process before the funds can be disbursed. “And all of these rules are violated by illegal online lenders. Therefore, based on these reasons, we prohibit individuals who have already borrowed from illegal online lenders from making repayments,” he emphasized (Wan)