Don't Intentionally Default on Online Loans: Major Risks Loom

Don’t Intentionally Default on Online Loans: Major Risks Loom

Jakarta, CNBC Indonesia — When applying for loans, whether through bank credit or online loan services (pinjol), it is important for the public to consider their financial capacity to repay obligations before the due date.

Cases of defaults (galbay) or bad debts are still prevalent. The causes vary, from limited funds, poor financial management, to a lack of understanding of loan terms.

This phenomenon is common, especially when borrowing from pinjol services with relatively easy requirements. So, what are the risks faced if one fails to repay pinjol debts?

Chairman of ICT Watch, Indriyatno Banyumurti, stated that the risks of defaulting on pinjol debts are significant. For example, one will be haunted by increasingly large fines, psychological disturbances due to piling debts, and legal threats.

Indriyatno also mentioned that social media content related to the galbay phenomenon tends to go viral more quickly because it is negative in nature. Therefore, financial education for pinjol consumers is needed.

“Why is there promotion of defaults (galbay)? Content needs to be provided to counter such content. If someone intends to default, even planning it that way, there are legal risks,” Indriyatno explained in the FintechVerse 360kredi podcast on YouTube, quoted Sunday (19/4/2026).

In addition to legal risks, defaults also impact the decline in the SLIK OJK credit score for users. This can result in difficulties in applying for credit, such as purchasing motor vehicles or home loans.

“So don’t take it lightly that simply shirking responsibility, avoiding payments to fintech lending (pindar), and then living peacefully,” said Indriyatno.

Currently, there are 95 legal licensed pinjol providers from OJK. Meanwhile, OJK records outstanding online loan financing as of February 2026 reaching Rp100.69 trillion. This achievement grew by 25.75% year-on-year.

Meanwhile, the aggregate non-performing loan ratio (TWP90) rose to 4.54% in the same period. This figure increased compared to the previous TWP90, which was around 2%.

The same sentiment was expressed by IdScore’s Commercial Director, Wahyu Trenggono, who said that every individual must maintain and check their credit history or score to avoid difficulties in obtaining funding.

“Credit scoring must be maintained, because the impact is very broad. Later, one can’t get a job, it’s hard to find work, even finding a partner is difficult if the score is bad,” he said at the AFPI Journalist Workshop and Gathering in Bandung recently.

With several default risks, the public should be more cautious when deciding to borrow money from pinjol services. Ensure you are confident in repaying the borrowed money.