A total of 3,193 illegal online lenders have been shut down by the Investment Alert Task Force since 2018.

The Indonesian Investment Alert Task Force (SWI) has stopped the activities of 3,193 illegal peer-to-peer lending fintech or online loan (pinjol) platforms. Details show that 404 illegal pinjol platforms were shut down in 2018. This number then increased to 1,493 platforms in 2019.

The number of illegal pinjol platforms whose operations were stopped decreased to 1,026 in 2020. The number was only 270 platforms until June 2021.

SWI Chairman Tongam L Tobing said that halting operations is difficult because the servers of most illegal pinjol platforms are located overseas. Only 22% of illegal pinjol servers are located in Indonesia.

The rest are located in the United States, Singapore, China, Malaysia, and Hong Kong. In fact, the location of 44% remains unknown because their offers are made privately, through social media or SMS.

The SWI advises the public to borrow only from the 125 fintech companies that are registered or licensed by the Financial Services Authority (OJK). The amount borrowed should also be in accordance with the needs and repayment capacity of the borrower.

Furthermore, the public needs to understand the benefits and risks before borrowing. They must also understand the loan terms, such as interest rates, loan terms, and penalties.