OJK responds to MUI edict banning online loans containing Riba

TEMPO.CO, Jakarta – Financial Services Authority (OJK) Spokesperson Sekar Putih Djarot has responded to the edict or fatwa of the Indonesian Ulema Council (MUI) which declares loans online or offline with interest or known as riba is haram or illegal according to Islamic law. According to Sekar, the Indonesian financial system still adheres to a dual system, so there is always the possibility of online or offline loans being established based on conventional and Sharia law.

“We interpret it as a prohibited practice by illegal lenders,” Sekar said Friday, November 12.

President Joko Widodo or Jokowi worries about illegal online lending and urges OJK, Ministries and Police to eradicate them. Sekar pointed out that ministries and agencies are working to crack down on high-interest lending and debt collection practices that violate the law.

According to her, the OJK and the police have been proactive in finding out the root causes of the loan problem and taking legal repressive measures. The OJK, she added, has also held talks with the Indonesian Association of Fintech Lenders (AFPI), which has agreed to urge lenders to lower the current interest rate on loans by 50%. .

“OJK is now preparing to restructure the lending ecosystem, starting with [the elements of] capital, fit and proper, risk management and others,” she said.

Read: Jakarta police launch hotline to crack down on illegal loans


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