Indonesia Pushes Digital ID as KTP Misuse Fuels Loan Fraud

Indonesia faces a rise in the misuse of citizens' identity cards (KTP) for fraudulent online loan applications. Victims may receive unexpected loan bills, see their credit scores fall, and confront legal or administrative problems. The Financial Services Authority (OJK) advises people to verify any credit activity through its SLIK system and to check directly with loan platforms, calling for prompt reporting of unrecognized accounts.

At the same time, the government is accelerating the digitisation of civil registration. The city of Palangka Raya has recorded 98.98% of its population with electronic KTP and has registered over 42,000 users of the Digital Population Identity (IKD). Officials say the integrated digital identity will streamline access to education, health, banking, taxation, elections, social assistance and other public services, reinforcing a nationwide digital public infrastructure.