Indonesia Rumbles 123 Illegal FinTechs

Indonesia Rumbles 123 Illegal FinTechs
Photo by Afif Kusuma on Unsplash

An Indonesian financial task force has uncovered 123 illegal fintechs operating in the country. The websites and apps have been found operating without the appropriate licenses from the indoneisa financial regulator Otritas Jasa Keuangan (OKJ). 

Along with the fintechs, that are offering lending online illegally, a further 30 pawn websites and 49 illegal investment sites were rumbled. The investment companies break down as 40 forex traders, 3 investment schemes, three investment tech apps, one credit card service, one ATM card service, and one online investment scheme. 

The Investment Alert Taskforce has said they will request the companies be blocked from operating online by the Ministry of Communication and Information Technology. Further, the taskforce intends to as the central bank, Bank Indonesia, to block the illegal companies from using banking systems and will urge banks to check with the OKJ before allowing fintech companies to deal with them.

Since the beginning of 2019 there has been a total of 949 illegal online lenders uncovered in Indonesia. "So we hope that the public can be more observant before deciding to make loans online by seeing whether the fintech lending has been registered with the OJK or not," Chairman of the Investment Alert Task Force Tongam Tobing said in an statement

South East Asia is one of the leading markets for fintech innovation, Indonesia being at the forefront of the changes to banking and commerce. The nation is home to four tech unicorns out of only seven in the ASEAN region.