JakartaGlobe-Aug 19
Indonesia’s Financial Services Authority (OJK) has shut down more than 1,800 unlicensed financial entities, including illegal online lenders and fraudulent investment schemes, as part of a nationwide crackdown on financial crimes. The action was carried out through the Task Force for Combating Illegal Financial Activities, which brings together law enforcement agencies, ministries, and regulators such as the police, prosecutors, the Commodity Futures Trading Authority (Bappebti), the Communication and Digital Affairs Ministry, and the Trade Ministry. “We have closed down over 1,800 illegal financial entities, ranging from unauthorized online lending platforms to fraudulent investment offers that have caused widespread harm,” said Friderica Widyasari Dewi, OJK’s Head of Business Conduct Supervision, Consumer Education, and Protection, on Tuesday. “Now the law is clear. Perpetrators can face five to ten years in prison and fines ranging from Rp 1 billion to Rp 1 trillion ($61,000-$61 million),” she said. While digitalization has widened access to financial services, it has also opened the door to sophisticated scams. Losses from scams and illegal financial activities have surged sharply, reaching Rp 4.6 trillion ($283 million) since the launch of the Indonesia Anti-Scam Center (IASC) in November 2024. Prior to the center’s establishment, studies over a 1.5-year period estimated losses at about Rp 2 trillion. The IASC, which fields 700–800 scam reports daily, has received 225,281 reports so far and blocked 72,145 out of 359,733 flagged accounts. By comparison, Singapore records 140-150 scam reports per day, Hong Kong 124, and Malaysia 130. On August 4, OJK reported blocking 66,271 scam-linked accounts and freezing Rp 348.3 billion ($21.4 million) in illicit funds. Fraudsters often exploit bank accounts, virtual accounts, e-commerce platforms, digital wallets, and cryptocurrencies to siphon funds, making detection and enforcement increasingly complex. Read more at: https://jakartaglobe.id/business/indonesia-shuts-1800-fraudulent-lenders-and-investment-schemes
