This step must be supported by opening access to public complaints. The active participation of the community in reporting this illegal act is an integral part of handling loan policy that must be developed by the government
Jakarta (ANTARA) - The Indonesian government will not tolerate illegal online lending given its detrimental impact on the community, Coordinating Minister for Political, Legal, and Security Affairs Mahfud MD has emphasized.



"Illegal money lenders are ruthless and only bring disadvantage for the victim. There is also a mutually beneficial ecosystem from this practice that only brings benefits to certain elements," he said in a press statement on Friday.



The government, through a number of relevant ministries and non-ministerial government institutions (K/L), has continued to make joint efforts to eradicate and take firm action against illegal online lending practices that harm the community, he informed.



Harmful practices carried out by illegal online lenders include imposing higher interest rates than banks, providing unsecured loans, and gaining consent to access personal data as a prerequisite for loans, he said.


Related news: Gov't mulls regulation for supporting quality journalism: minister


Illegal online loan services are often misused by service providers, especially financial institutions that are not registered and are not supervised by the Financial Services Authority (OJK) and related associations, he added.



Closing off access of illegal lenders by the Ministry of Communication and Informatics is part of an administrative action that the country can take, the minister said. This can minimize the space for illegal online loan services and save the community as well, he added.



"This step must be supported by opening access to public complaints. The active participation of the community in reporting this illegal act is an integral part of handling loan policy that must be developed by the government," Mahfud added.



Meanwhile, legal lending services, which are licensed by the OJK, must receive support from various stakeholders, he said.



The government is also encouraging legal loan providers to comply with rules and ethics in billing, provide low and affordable interest rates, and provide good services to the community, he said.


Related news: Religious denominations in Indonesia granted equal protection: Mahfud


"The government will also encourage to regulate a law related to the digital financial services sector and the ratification of the Personal Data Protection Bill as an effort to protect citizens. This data protection is important to protect the data of victims who are often exploited by illegal lenders," the minister said.



The government will also extend protection under civil and criminal law by providing a space for parties involved in disputes to resolve their case, he informed. The government will also take firm action against behaviors that harm citizens, he said.



Law enforcement must be carried out consistently and reach out to funders, corporations, and important actors who organize illegal loans, he emphasized.



"Law enforcement should not only target subordinate employees. Please consider that this illegal loan practice involves a lot of networks, even in foreign countries," the minister added.


Related news: Mahfud asks police to adopt humanistic approach while discharging duty

Related news: Police complied with procedures in Wadas incident: Chief Minister

Translator: Syaiful Hakim, Resinta S
Editor: Fardah Assegaf
Copyright © ANTARA 2022