Addin Anugrah Siwi, Jakarta – Indonesia's Financial Services Authority (OJK) has shut down more than 1,800 unlicensed financial entities, including illegal online lenders and fraudulent investment schemes, as part of a nationwide crackdown on financial crimes.
The action was carried out through the Task Force for Combating Illegal Financial Activities, which brings together law enforcement agencies, ministries, and regulators such as the police, prosecutors, the Commodity Futures Trading Authority (Bappebti), the Communication and Digital Affairs Ministry, and the Trade Ministry.
"We have closed down over 1,800 illegal financial entities, ranging from unauthorized online lending platforms to fraudulent investment offers that have caused widespread harm," said Friderica Widyasari Dewi, OJK's Head of Business Conduct Supervision, Consumer Education, and Protection, on Tuesday.
Legal authority for tougher action
Friderica explained that the crackdown is backed by Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector, which grants OJK full authority to take action against illegal operators.
"Now the law is clear. Perpetrators can face five to ten years in prison and fines ranging from Rp 1 billion to Rp 1 trillion ($61,000-$61 million)," she said.
She also pointed to Law No. 21 of 2011 on OJK, which was designed to adapt financial regulations to the digital era – where scams and online fraud have grown increasingly prevalent.
While digitalization has widened access to financial services, it has also opened the door to sophisticated scams. "Fraudsters don't just target the less educated. Anyone can become a victim if they let their guard down," Friderica warned.
Mounting losses from scams
Losses from scams and illegal financial activities have surged sharply, reaching Rp 4.6 trillion ($283 million) since the launch of the Indonesia Anti-Scam Center (IASC) in November 2024. Prior to the center's establishment, studies over a 1.5-year period estimated losses at about Rp 2 trillion.
The IASC, which fields 700-800 scam reports daily, has received 225,281 reports so far and blocked 72,145 out of 359,733 flagged accounts. By comparison, Singapore records 140-150 scam reports per day, Hong Kong 124, and Malaysia 130.
On August 4, OJK reported blocking 66,271 scam-linked accounts and freezing Rp 348.3 billion ($21.4 million) in illicit funds.
Fraudsters often exploit bank accounts, virtual accounts, e-commerce platforms, digital wallets, and cryptocurrencies to siphon funds, making detection and enforcement increasingly complex.
Friderica stressed that combating financial crime requires not just law enforcement but also public participation and financial literacy. She urged consumers to actively report scams and called on banks, fintech firms, and capital market players to take a stronger role in consumer protection and trust-building.
"OJK will continue strengthening supervision to ensure public protection. We encourage more people to report scams so our efforts can be even more effective," Friderica said.
Source: https://jakartaglobe.id/business/indonesia-shuts-1800-fraudulent-lenders-and-investment-scheme