Stricter oversight of online lending needed to prevent fund misuse
Jakarta (ANTARA) - Financial consultant and planner Elvi Diana is urging policymakers to tighten oversight of funding sources and flows in the online lending (pindar) industry to prevent the misuse of funds.
Elvi said in a statement in Jakarta on Tuesday that such oversight is increasingly important amid the growing involvement of foreign lenders in the pindar industry.
Based on findings from the Financial Services Authority (OJK) up to June 2026, pindar funding originating from foreign lenders reached Rp17.28 trillion, or grew significantly by 34.18 percent year-on-year (yoy).
“The state must ensure that funds entering the pindar industry are truly clean. The pindar industry must not become a space for bringing in, disguising, or rotating funds derived from criminal acts, money laundering, or other suspicious transactions,” said Elvi.
According to Elvi, the growth in foreign funding is a development that should be appreciated as long as it takes place within a framework of transparent, accountable governance and in accordance with prudential principles. However, this growth also presents supervisory challenges because it involves cross-border fund flows.
“The larger the funds coming in from abroad, the more important the state’s ability to trace beneficial owners, the origin of funds, the intended use of funds, and transaction patterns. Do not only ensure the legality of the pindar platform, but the source of funds must also be examined,” she explained.
Elvi believes that the principles of know your customer (KYC) and anti-money laundering (AML) should not stop at verifying the identity of borrowers. The same principles must be applied rigorously to lenders, including lenders from abroad.
According to her, oversight needs to include tracing the identity and ultimate beneficial owner, the origin of wealth and funds, transaction patterns, and the relationship between lenders and parties receiving funding.
Elvi also encouraged various policymakers to strengthen coordination, including the Financial Services Authority (OJK), the Financial Transaction Reports and Analysis Centre (PPATK), Bank Indonesia, law enforcement agencies, and authorities in other countries in overseeing cross-border fund flows.
She argued that the follow-the-money mechanism must become an important part of pindar industry oversight.
Moreover, strengthening oversight of funding sources is also necessary to maintain public trust in the pindar industry.
Therefore, Elvi believes the momentum of growth in foreign lender funding must be accompanied by improved oversight quality.
“The pindar industry must grow, but its growth must have integrity. The state is obliged to ensure that no funds from criminal acts, money laundering, or suspicious transactions enter and circulate within it,” said Elvi.