MP: Debt Collection for Online Loans to Friends and Family Violates the Law
Yasonna H. Laoly, a member of Commission XIII of the Indonesian House of Representatives (DPR RI), stated that collecting online loan (pinjol) debts from family members and colleagues violates Law Number 27 of 2022 concerning Personal Data Protection. Yasonna noted that debt is a civil legal relationship between the borrower and the lender.
“Family, friends, offices, colleagues, even schools or other parties have no civil legal relationship with the debt obligation. Therefore, they must not be targeted with pressure, threats, or terror during the collection process,” Yasonna stated in an Instagram post shared on Tuesday.
Yasonna emphasised that electronic data, mobile numbers, contact lists, and personal identities belong to the individual. This data must not be taken, used, distributed, or provided to third parties illegally by companies or any other entity. “Companies must not provide or utilise an individual’s personal data without permission from the person concerned. Debt collection must be conducted legally, ethically, and with respect for everyone’s privacy rights based on applicable regulations.”
In the post, Yasonna added that the public has the right to reject collection practices that violate the law and can gather evidence to report to the authorities. Evidence that can be collected includes screenshots of chats, call recordings, collector numbers, application names, and message content. Reports can be filed with the Financial Services Authority (OJK), the Ministry of Communication and Digital (Komdigi), and the police.
The OJK has implemented strict regulations for the online lending sector since 2024. Within the roadmap for Information Technology-Based Joint Funding Services (LPBBTI), the OJK mandates that online lending providers are fully responsible for the collection process, including when using third-party services. This means that employed debt collectors must be under the direct control and supervision of the provider.
Agusman, the Executive Head of Supervision for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions (PVML) at the OJK, stated that every provider is required to explain fund repayment procedures to debtors or customers. Furthermore, debt collectors are prohibited from using threats, intimidation, or actions containing elements of SARA (ethnic, religious, racial, and inter-group) discrimination. Collection is only permitted until 8:00 PM local time.
Violations of these rules could result in severe sanctions under Law No. 4 of 2023 concerning the Strengthening of the Financial Sector (UU PPSK), including imprisonment and fines reaching hundreds of billions of rupiah. Specifically, Article 306 of the UU PPSK stipulates that if a financial sector business actor (PUSK) commits violations during collection or provides false information to customers, they may face imprisonment for a minimum of 2 years and a maximum of 10 years, along with fines ranging from a minimum of Rp 25 billion to Rp 250 billion.