August 11, 2025 | 09:02 pm
TEMPO.CO, Jakarta - Chairperson of the Indonesian Joint Funding Fintech Association (AFPI), Entjik S. Djafar, revealed that illegal online loans (pinjol) continue to dominate the market, with an estimated turnover between Rp230 trillion and Rp260 trillion.
He noted that this figure far exceeds the total disbursed funds from the officially regulated peer-to-peer (P2P) lending fintech sector under the Financial Services Authority (OJK), including productive lending distributed through the Joint Funding (Pindar) platform.
“The size of the illegal pinjol market remains very large and could reach hundreds of trillions of rupiah. This is a challenge for us to keep encouraging the public to switch to legal platforms,” Entjik said during a public discussion held at the Celios Office in Jakarta on August 11, 2025.
Entjik added that although the AFPI recorded solid growth in the Pindar sector, reaching Rp83.3 trillion as of June 2025, the scale still lags behind illegal operators. He attributed this to aggressive promotions and the ease of access typically offered by illegal lending platforms.
He also highlighted the growing number of foreign lenders participating in the Pindar sector. However, stronger regulatory support and public education remain essential to counter the spread of illegal lending services.
“We hope the public becomes more aware of the dangers of high interest rates and the misuse of personal data often associated with illegal pinjol. The OJK and AFPI will continue working together to address these gaps,” he said.
Meanwhile, Muchtarul Huda, Director of Strategy and Oversight for Digital Space Policy at the Ministry of Communication and Information, emphasized the government’s commitment to protecting personal data within the Pindar industry. He pointed out that this commitment is reflected in the enforcement of the Personal Data Protection Law (UU PDP).
“The UU PDP marks a shift in perspective, from seeing personal data as a company asset to recognizing it as a trust that must be protected by data controllers under the ownership of individuals,” Huda explained.
He added that every data controller is now required to embed data protection principles into their operations. This includes access limitations, implementing data protection by design and by default, and using security technologies that align with international standards like ISO 27001.
In the case of Pindar, the types of data collected range from basic information such as names, phone numbers, and addresses, to more sensitive data such as financial details and biometric records. All data must be managed in accordance with regulations across its entire lifecycle, from collection and storage to deletion.
Huda warned that violations of the UU PDP could result in administrative sanctions of up to 2 percent of annual revenue, or even criminal penalties. “This is not just a symbolic regulation. It is a required protection framework that must be implemented by all data controllers,” he said.
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