We will notify members if they cooperate with illegal fintech (financial technology) firms
Jakarta (ANTARA) - The Indonesian Joint Funding Fintech Association (AFPI) has planned to establish a joint task force to address the issue of illegal online peer-to-peer lending.

"We will notify members if they cooperate with illegal fintech (financial technology) firms," AFPI Secretary General Sunu Widyatmoko stated during a webinar to commemorate National Fintech Month monitored here on Thursday.

The association will collaborate with the Indonesia Fintech Association (AFTECH) in the task force.

The AFPI will also work closely with the Indonesian Police, Communication and Informatics Ministry, and Financial Services Authority (OJK) to tackle illegal online lending, he noted.

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Widyatmoko noted that the AFPI will set up a fintech data center, a database similar to OJK's Financial Information Service System (SLIK) for banking services.

The database will enable AFPI members to check the track record of individuals requesting the loan, any existing debt with another fintech firm, or whether the debt had been cleared.

According to Widyatmoko, the database will help in risk analysis to enable companies to impose a rate based on the debtor's risk level.

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The AFPI has provided certification to its members to encourage them in understanding the regulation in Indonesia regarding financial lending, he noted.

Widyatmoko stated that the certification was also provided for customer services and debt collectors, so they would avoid unethical ways to collect debt, which was one of the complaints regarding illegal online lending.

The AFPI confirmed to have received 3,747 complaints on illegal online lending in 2021, most of which were related to unethical debt collecting.

The AFPI has 106 members of fintech lenders and 43 ecosystem-supporting firms.

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Translator: Natisha Andarningtyas, Sri Har
Editor: Fardah Assegaf
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