Don't Panic! Here's a Legal Guide When Visited by Debt Collectors
Don’t Panic! Here’s a Legal Guide When Visited by Debt Collectors
Jakarta, CNBC Indonesia — The profession of debt collector is once again in the spotlight, following allegations of violence committed by debt collectors employed by PT Mandiri Tunas Finance.
Executive Supervisor of PVML OJK, Agusman, stated that every institution is obliged to explain the debt repayment procedure to debtors.
“Debt collection must be carried out ethically. There must be no threats, intimidation, or elements of SARA (Suku, Agama, Ras, dan Antar Golongan - Ethnicity, Religion, Race, and Intergroup Relations) in any form,” he said, quoted on Thursday (26/2/2026).
OJK has also set a maximum time limit for debt collection until 8:00 PM local time. In addition, debt collectors are prohibited from humiliating debtors or intimidating emergency contacts, friends, or family, including through cyberspace.
With these new rules, the public is advised to know their rights when facing debt collectors who come to their homes. Here are the steps that can be taken:
- Ask for Identification
Greet them politely and ask for complete identification, including who authorized the debt collection and the contact details of the person in charge.
- Ask for a Professional Certification Card
Official debt collectors have a certificate from the Indonesian Financing Company Association (APPI). This is proof that they are carrying out their profession legally.
- Explain the Reason for the Delay
Clearly explain the reason for the delay, and make sure to communicate directly with the lender. Avoid making any promises that could complicate the process.
- Check the Debt Collection Power of Attorney
If there is a plan to seize assets, make sure the debt collector has an official power of attorney from the lender.
- Ensure There is a Fiducia Guarantee Certificate
Seizure is only valid if accompanied by a Fiducia guarantee certificate. If the debt collector cannot show it, you have the right to refuse the seizure. Fiducia is the transfer of ownership of an object from the debtor to the creditor as collateral, but the object remains in the possession or use of the debtor.
By understanding these rules and official procedures, debtors can be more confident in facing debt collection and avoid illegal practices.
(mkh/mkh)