Bank Indonesia bans non-bank companies from helping illegal online lending services

TEMPO.CO, JakartaBank Indonesia or BI is about to send a letter to payment service providers or non-bank financial companies regarding illegal and rampant online lending platforms. BI will convey three messages, including banning them from cooperating or facilitating illegal online lending services.

“After that, we will take immediate action. One of them submits a letter, ”BI Governor Perry Warjiyo said when signing a joint statement on eradicating illegal online lending in Jakarta on Friday August 20.

The Financial Services Authority (OJK), the National Police, the Ministry of Cooperatives and SMEs and the Ministry of Communication and Information also took part in the joint statement.

Perry said his camp would emphasize the precautionary principle of businesses in fulfilling their obligations to fight money laundering, prevent terrorist financing and embrace the Know Your Customer principle (KYC ).

The Bank of Indonesia will also require financial companies to strengthen their financial literacy and set up active communication programs.

Perry further pointed out that illegal online lending was an illicit activity outside of the financial system. He said it had not only disrupted efforts to revive the national economy, but also created legal and social problems. “This is what we have to fight together,” he said.

Read: OJK reveals two illegal issues online at Cabinet meeting


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David A. Albanese