Illegal online lending company raided in Yogyakarta, 83 staffers held

Illegal online lending company raided in Yogyakarta, 83 staffers held

A screenshot of a video on a raid at an illegal online loan company in Sleman district, Yogyakarta late on Thursday (October 14, 2021). (ANTARA/HO-Yogyakarta Police/sh)

Yogyakarta (ANTARA) - West Java police have arrested 83 employees of an illegal online lending syndicate operating out of Depok sub-district, Sleman district in Yogyakarta.

Yogyakarta Police joined the West Java police's Directorate of Special Criminal Investigation in the raid and conducted a preliminary investigation at the location, a spokesperson for the Yogyakarta Police, Senior Commissioner Yuliyanto, said here on Friday.

"We backed up the West Java Police," Yuliyanto informed.

The 83 workers who were apprehended in the raid included a debt collector, a manager, and two human resource staffers, he said.

All of them were taken to West Java Police Headquarters for further investigation, Yuliyanto informed.

Some of the employees are residents of Yogyakarta, and some came from other provinces in Sumatra, Sulawesi, Kalimantan, he added.

"I did not ask them about their age, but looking at their appearance, none of them are old," he said.

Some of the staff have been working for the company for one month, some others just for two days, Yuliyanto informed.

"They received a monthly salary of Rp2.1 million, but some have yet to get their salary," he added.

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In the raid on Thursday (October 14, 2021) night, police also seized 105 computers, 105 cellphones, and some other evidence from the company, he said.

Director of West Java Police's Special Criminal Investigation, Senior Commissioner Arief Rahman, said the police received a report from an alleged victim of the lender.

Based on the police investigation, the online lending syndication was based in Yogyakarta, he continued.

Police have relevant digital evidence for further investigation into the case and for taking legal measures against the suspects, Rahman said.

The illegal lending company used 23 applications, all of which were not registered with the Financial Service Authority (OJK), except one, which was used to deceive the victims, he added.

"The arrest was made following the instruction of the Indonesian police chief to take stern measures against online loan syndications that have unsettled the public," he said.

Illegal online lending operations have grown exponentially in the past two years amid the growing popularity of financial technologies apps during the pandemic, he added.

President Joko Widodo has urged law enforcers to increase surveillance of illegal lending practices.

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