OJK Urges Public to Exercise Caution as Financing Becomes More Accessible

Jakarta (ANTARA) – The Financial Services Authority (OJK) has urged the public to exercise caution, as easier access to financing must be matched by the ability to repay and an understanding of the associated risks.

“Easy access to digital financing must be accompanied by adequate literacy, an understanding of risks and the ability to meet obligations, so that the benefits of financial technology can be realised optimally and sustainably,” said Agusman, OJK’s Chief Executive for the Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions and Other Financial Services Institutions.

In a statement issued in Jakarta on Sunday, Agusman said technological advances had significantly changed the financing process, making it faster, easier and more inclusive.

“Digital financing makes it possible to complete processes that previously took months in a matter of seconds, through the use of technology, artificial intelligence and machine learning to assess financing eligibility,” Agusman said.

Digital financing, he added, plays a strategic role in broadening public access to finance and supporting the development of productive sectors and micro, small and medium-sized enterprises (MSMEs).

The easier access to funding it offers could help drive higher productivity and inclusive economic growth.

“When conventional financial services struggle to reach all sections of society, digital financing can broaden access to finance, provided connectivity and digital infrastructure are available,” he said.