Ministry Has New Authority to Block Illegal Online Lending

The Ministry of Communication and Digital Affairs (“Ministry”) will have new authority to directly block (take down) applications or websites from illegal fintech or online lending companies. This authority will be stipulated in the Draft Regulation of the Government (“Draft Regulation”) on the Organization of Online Lending (Pinjaman dalam Jaringan - “Pindar”).

“It is still being discussed and coordinated with the Financial Services Authority (“OJK”),” said Minister of Communication and Digital Affairs (Minister) Meutya Hafid to Hukumonline.

In order to support this authority, the Ministry will conduct 24/7 cyber patrols to monitor and take action against illegal online lending platforms. This regulation will also require every Pindar that has obtained a license from the OJK to register its platform as an Electronic System Provider (“PSE”) before it can operate officially.

“The eradication of illegal online lending cannot be done by one institution alone, so we are coordinating together in a task force,” she briefly explained.