Government Prepares Regulations for Rapid Blocking of Illegal Online Lending Platforms

The government continues to draft Regulation of the Government on Online Lending (Rancangan Peraturan Pemerintah tentang Pinjaman Dalam Jaringan- “ RPP Pindar ”). Radita Ajie, Head of the Legal Bureau at the Ministry of Communication and Digital Affairs (“ Komdigi ”), explained that the mechanism for expediting the termination of access to unlicensed online loans (“ Pinjol ”) will be coordinated with the Financial Services Authority (“ OJK ”).

“The acceleration of access termination can be carried out by referring to the list of licensed online lending organizers published by the OJK. This list can serve as a guideline for Komdigi in processing public complaints related to illegal pinjol,” she told Hukumonline.

This regulation represents a firm step in combating illegal pinjol practices that harm the public due to excessively high interest rates and fines, the misuse of personal data, and collection methods involving threats and intimidation. Accordingly, Komdigi can block content and websites of illegal pinjol platforms that are not registered as Electronic System Organizers(Penyelenggara Sistem Elektronik- “ PSE ”).

“It is still under technical discussion in the Inter-Ministerial Committee (Panitia Antar Kementrian/PAK) forum,” she added.