JABARTODAY.COM-JAKARTA. In response to the growing concern over illegal online lending (pinjol) in Indonesia, Member of Commission XI of the Indonesian House of Representatives, Fauzi H. Amro M.Si., has expressed his deep concern. As a member of the Nasdem Party, Fauzi has issued a strong prohibition on borrowers of illegal pinjol from repaying their debts.
Fauzi has stated that individuals who have borrowed money from illegal online lenders are not obligated to repay their debts. He deems the repayment or return of funds borrowed from illegal pinjol as forbidden. His reasoning lies in the fact that these pinjol operators do not possess the necessary permits, operate illegally, impose unreasonable interest rates that can reach up to 40 percent per month, or even as high as 500 percent. Furthermore, illegal pinjol operators often violate data privacy regulations, which should be prohibited by law.
These statements were made by Fauzi in Jakarta on July 14th as a response to the recent troubling issues surrounding pinjol. Through this measure, Fauzi aims to emphasize several reasons behind the prohibition. Firstly, illegal online lending operates without the necessary permits from the Financial Services Authority (OJK), thus violating regulations governing the financial sector. Therefore, individuals should not be forced to repay debts that originate from entities lacking legal validity.
Secondly, the exorbitant interest rates imposed by illegal online lending are often unreasonable and do not comply with the regulations set by the OJK. People should not be trapped in unfair and detrimental debt cycles.
Thirdly, operators of illegal online lending often breach the privacy of personal data of individuals in unethical ways. Consequently, it is essential to protect people from the misuse and violation of their privacy.
Fauzi also revealed that, according to information from the OJK, there are more than 3,500 illegal pinjol circulating within society.
In addition to issuing the prohibition, Fauzi has urged the relevant authorities, including the OJK, the Police, and other related agencies, to strengthen law enforcement, shut down, and ban the operations of illegal online lending. He also encourages the public to report any suspicious practices of illegal online lending to the authorities, so that appropriate actions can be taken promptly.
For individuals who have borrowed from legal pinjol that have obtained permits from the OJK, Fauzi advises them to repay their debts according to the regulations established by the OJK.
Fauzi explains that the presence of fintech or online lending aims to facilitate access to capital for micro, small, and medium enterprises (UMKM), as well as to promote financial inclusion in Indonesia. However, the existence of illegal pinjol practices has disrupted this positive intention. Fauzi emphasizes the importance of protecting the public from these detrimental practices of illegal pinjol, which have led to cases of divorce and even suicide. The interest rates reaching 144 percent per year are a striking example of abuse. Fauzi also highlights the violation of personal data privacy committed by operators of illegal pinjol.
Fauzi mentions that, according to the regulations set by the OJK, legal pinjol operators are prohibited from sharing or using personal privacy data (such as camera, microphone, and location), requesting information about close contacts, and ensuring that the disbursement process takes longer than 1 or 2 hours, typically requiring one or two days. However, all of these regulations are violated by illegal pinjol operators. Therefore, based on these reasons, Fauzi forbids individuals who have fallen victim to illegal pinjol from repaying their debts. (ruz]
