Board of Commissioner of Indonesia FSA (Photo by TheInsiderStories)

JAKARTA (TheInsiderStories) – Indonesian Financial Service Authority (FSA) through Investment Alert Taskforce stopped the operational of 125 illegal peer to peer (P2P) lendings, made the total of P2P stopped by FSA to 1.494 entities until Nov 2019, the regulator said in a statement today (12/03).

Head of Investment Alert Taskforce Tongam L. Tobing said that the illegal P2P lendings offered their services through apps and SMS. It is difficult to monitor the illegal entities, so the regulator notified the public to be careful before borrowing money on P2P lending apps by checking the legality on FSA’s website.

Tobing mentioned the closing of illegal P2P lending had also been done in October 2019 of 133 entities. Therefore, the regulator has closed 1.494 P2P illegals from Jan to Nov 2019 and 1.898 entities since 2018.

To anticipate further illegal P2P lending risks, the regulator cooperates with 13 ministries and institutions. They give the public information about the way to propose loan on P2P lending wisely and receive complaints of practice in P2P lending.

Besides closing the illegal P2P lending, Investment Alert Taskforce also stopped 182 entities that operate without a license from the authority. Totally, the regulator has been stopping 444 illegal entities from the beginning of 2019 until November 2019.

The entities consist of illegal foreign exchanges, money game, illegal equity crowdfunding, illegal multi-level marketing, date palm trade, property investment, umrah institution and illegal cryptocurrency and cooperative.

“Those entities are perilous because scamming the illiterate public with high return and unlogical return investment,” he asserted.

Previously, FSA planned to limit the number of P2P lendings, aims to balance the number between the institutions and the customers. Also, it is to prevent customers trapped by too easily borrowing money from the apps as is common nowadays.

To support it, Chief Executive of Non-Bank Financial Industry Supervisor FSA Riswinandi said, they asked the association to count the number of existing P2P lending. In the event the results of the study are deemed sufficient, they will limit the P2P lending numbers.

FSA’s Director Hendrikus Passagi said that there have been around 50 P2P lendings that are currently registering to FSA. To obtain registered status from FSA, fintech lending must go through several processes and join the association fintech lending data center.

Meanwhile, since the rules of P2P lending in 2016, there have been 144 fintech lending registered at FSA. Of the 144 registered, 17 of them have obtained a license from FSA. While in terms of financing, as of October 2019, fintech financing has disbursed loans of Rp60.4 trillion to 14.4 million customers.

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