Failed to Repay Online Loans, Economist: Loans Considered Additional Income

Economist from Universitas Gadjah Mada, Eddy Jurnasin, has revealed that the numerous cases of loan defaults by Indonesian society due to online loans (pinjol) stem from several factors. One of them is considering pinjol as additional income. “Quick loans are sometimes regarded as ‘additional income,’ whereas they must be repaid in instalments,” Eddy explained, quoted from Kompas.com on Tuesday (14/4/2026). Moreover, living expenses have also risen, thereby increasing outlays. “Demands of personal living needs and also for the family. If one already has a family, then living costs also rise,” he clarified. “Economic conditions and the job market at certain points also influence the tendency to take on more loans and default,” he stated. Eddy suggests that if taking a loan is necessary, it should be channelled into productive matters. “Even if there must be a loan, the purpose is for productive things, for example, mortgages, children’s education, business capital, and so on,” he said. However, afterwards, the company is no longer permitted to collect it; this is recommended to prevent unjust collection practices. The problem is that debtors consider the cessation of collection to mean the debt is settled. The obligation to pay remains attached to them; instead, if left alone, the debt grows larger due to fines as well as accruing interest. Companies providing pinjol can also take debtors to legal channels if the debt is not promptly paid. In addition, debtors whose pinjol credits are delinquent for 90 days enter the blacklist of the OJK’s Financial Information Services System (SLIK). The higher the OJK SLIK score, the more access to other financial services in the future is hindered.