Jokowi calls for a moratorium on online credit business licenses from OJK


TEMPO.CO, JakartaPresident Joko “Jokowi” Widodo called for a moratorium on the Financial Supervisory Authority (OJK) on issuing new business licenses for online lending after the rampant rise of illegal financial technology or fintech companies offering loans at irrational, high interest rates.

“In view of the many criminal acts in online credit matters, the President orders the OJK to impose a moratorium on the issuing of licenses to fintechs for new legal online loans,” said Communications and Information Minister (Kominfo) Johnny Gerald Plate at the State Palace, Jakarta, Friday October 15.

According to Johnny, the head of state stresses that online credit management needs to be monitored and properly implemented as more than 68 million people are part of the fintech ecosystem.

In addition, the fintech business has generated huge cash sales of Rp260 trillion. To date, OJK has given 107 companies permission to conduct online lending.

The government would also cleanse the digital space of illegal online lending practices. The police, Johnny continued, would take decisive action to prosecute illegal businesses that trap people with huge interest rates.

In line with the efforts, Kominfo Ministry will continue to close down illegal online loan sites and mobile applications. As of 2019, Johnny said, the ministry has blocked access to 4,874 online credit accounts spread across Google, PlayStore, YouTube, Instagram and file sharing. Of these, 1,856 accounts will be completely closed this year.

“The Kominfo Department has also established a Digital Economy Forum, which holds monthly meetings to discuss developments, improvements and updates in digital space and digital economy transactions, including online credit,” said Johnny.

Read: Bank Indonesia Bans Non-Bank Firms From Aiding Illegal Online Credit Services


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