OJK's Threat to Illegal Lenders Using Barbaric Debt Collectors for Debt Collection

The Financial Services Authority (OJK) has reaffirmed its commitment to maintaining market discipline, strengthening governance in the financial services industry, and enhancing consumer protection to preserve public trust in the sector. As part of this commitment, OJK has once again imposed administrative sanctions on PT Indosaku Digital Teknologi (Indosaku) for non-compliance in managing and supervising debt collection activities, particularly those carried out by third parties. The sanctions follow a special examination conducted by OJK to ensure compliance with debt collection conduct regulations, governance of third-party usage, and consumer protection principles. Based on the examination results, OJK identified non-compliance in managing and overseeing debt collection activities, especially in ensuring that third-party collections are conducted in a compliant, professional, ethical, and lawful manner. In response, OJK has levied administrative sanctions on Indosaku, including an administrative fine of Rp875,000,000, a written warning to the President Director of Indosaku, and an order to prepare and implement an improvement plan for debt collection activities, particularly those involving third parties. The mandated improvement plan must at minimum include: improvements and refinements to debt collection policies and procedures to align with applicable regulations; a comprehensive evaluation and strengthening of Cooperation Agreements (PKS) with third parties, including provisions on behavioural standards, compliance obligations, monitoring mechanisms, reporting, and sanctions; refinements to quality control mechanisms covering operational performance, compliance, ethics, and debt collection behaviour; and strengthening of training, monitoring, and periodic evaluation of collection personnel, including mechanisms for handling consumer complaints. “OJK emphasises that the use of third parties in debt collection activities does not transfer or reduce the provider’s responsibility. Every provider must ensure that appointed third parties conduct debt collection in a compliant, professional, ethical, and lawful manner,” stated Agus Firmansyah, Head of the Surveillance and Integrated Financial Services Sector Policy Department at OJK, in his remarks. OJK has also requested a commitment from Indosaku’s Board of Directors to implement these improvements comprehensively and on time. OJK will closely monitor the implementation of the said improvement plan. Should further non-compliance or violations be found in the future, OJK will take firmer supervisory and enforcement actions in accordance with applicable laws and regulations. To all Financial Services Business Actors (PUJK), OJK urges continued strengthening of oversight to ensure that all debt collection activities towards consumers, including those by third parties, are conducted in accordance with the code of ethics and applicable laws and regulations. “OJK also encourages the public to promptly report complaints to OJK if they experience debt collection practices involving threats, intimidation, harassment, dissemination of personal data, or other actions not in line with regulations,” he added. OJK states that consumer protection must be balanced with consumer responsibilities in using financial services. Debtors must understand their rights and obligations, assess their repayment capacity before borrowing, and fulfil payment obligations as per the agreement. The public is also urged to use financial services prudently, responsibly, and according to their needs, avoiding loans beyond their repayment capacity and only borrowing from licensed and OJK-supervised providers.