Jelang Lebaran, Jefry Romdonny, the head of the Financial Services Authority (OJK), is urging the Indonesian society to resist the temptation of illegal online lending services, known as pinjol. As the Islamic holy month of Ramadan approaches, many people may find themselves in need of extra funds to prepare for the upcoming Eid al-Fitr festivities. However, it is important to be cautious when seeking financial assistance, especially from unregulated lenders.
Pinjol, short for “pinjaman online” or online lending, has become increasingly popular in Indonesia in recent years. These online lending platforms offer quick and easy access to cash, often without requiring extensive documentation or credit checks. While this may seem convenient, many of these lenders operate outside of the law and charge exorbitant interest rates, leading to a debt trap for borrowers.
Jefry Romdonny warned that these illegal online lending services can cause serious financial harm to individuals and their families. He emphasized that these lenders often use aggressive debt collection methods, such as harassment and public shaming, to pressure borrowers into paying back their loans. This can lead to financial distress, mental health issues, and even suicide in extreme cases.
To combat the rise of illegal online lending, the OJK has been working closely with the government and law enforcement agencies to crack down on these unscrupulous lenders. They have also been raising public awareness about the dangers of using these services and promoting responsible borrowing practices.
As the festive season of Lebaran approaches, Jefry Romdonny is urging the Indonesian society to seek financial assistance from legitimate sources, such as banks and licensed financial institutions. He stressed the importance of conducting thorough research and reading the terms and conditions of any loan agreement before signing.
By staying informed and being cautious, individuals can protect themselves from falling victim to predatory lending practices. Jefry Romdonny’s message is clear: do not be tempted by the quick and easy cash offered by illegal online lenders, and instead opt for safe and regulated financial services. Let us all celebrate Lebaran with peace of mind and financial stability.
