Illegal Pinjol Report Dominate Java Island, This is a Statement of People’s Capital
The trend of illegal online loan complaints on the island of Java
Data released by the Financial Services Authority (OJK) shows that until April 2025, there were 2,523 complaints related to illegal online loans (PINJOL). Of this number, the island of Java became the region with the largest percentage, which was around 1,689 reports or around 66.94% of the total complaints. This shows that the island which is the center of economic and digital activity in Indonesia is also the main location for the spread of illegal pinjol.
In the opinion of PT Modal Rakyat Indonesia, one of the causes of the high number of complaints on the island of Java is the concentration of lending and economic activities that are greater than other regions. The company’s CEO, Christian Hanggra, explained that areas with high levels of digital activity and large financing needs tend to be the main targets of illegal pinjol.
In addition, Christian stated that the level of digital and financial literacy on the island of Java is relatively better than other regions. The people there understand more about their rights and are more active in reporting violations if they occur. This contributes to the increasing number of incoming complaints, which can be considered as an indicator of public awareness of the practice of illegal loans.
The negative impact of illegal lease on society and industry
Christian also highlighted the negative impacts caused by illegal pinjol, especially for the community and the fintech lending industry. One of the consequences is the decline in public confidence in the official and licensed fintech P2P lending services. This is due to the difficulty of the general public in distinguishing between legal and illegal pinjol.
In addition, the existence of illegal pinjol can increase the risk of misuse of personal data and intimidation of borrowers. Not following consumer protection rules, illegal entities often use unethical methods to collect debt.
Another impact is the obstacle in the penetration of formal financial services. Many people feel afraid or traumatized after experiencing illegal pinjol practices, so they are reluctant to use official financial services. To overcome this, Christian suggested the need for collaboration between industry players, regulators, and the community.
Efforts to raise awareness and supervision
The collaboration should include efforts to improve public literacy about financial services, tighten supervision of illegal entities, and strengthen the enforcement of illegal stake actors. With these steps, it is hoped that the public can be more aware of loan offers that are not clear in origin and have more confidence in official financial services.
In addition, it is important for the public to always check the license and reputation of the lender before making a transaction. With high awareness, the community can protect themselves from the harmful practices of illegal pinjol.
