Indonesia faces risks from illegal online lending services

The rise of digital lending and 'buy now pay later' services in Indonesia has provided rapid financial access, but it has also increased exposure to illegal online loan providers. According to data from the Otoritas Jasa Keuangan (OJK), the outstanding value of fintech lending reached Rp105.14 trillion as of June 2026.

Illegal lenders operate without official OJK authorization and lack consumer protection standards. Unlike legal providers, these entities often use fictitious addresses, charge unclear and excessively high interest rates, and demand invasive access to personal data, including phone contacts and photo galleries.

Risks associated with illegal platforms include the misuse of personal data, violations of data protection laws, and intimidating debt collection practices involving threats and harassment. To verify the legality of a service, consumers are advised to contact the OJK via their official WhatsApp or website.