OJK IndonesiaIndonesia’s investment alert task force Satgas Waspada Investasi (SWI) has closed 826 illegal fintech firms this year in their drive to clean up illegal investments in the country, the Southeast Asian country’s investment watchdog Otoritas Jasa Keuangan (OJK) tweeted on Friday.

Indonesia’s Financial Services Authority OJK and Criminal Investigation Police are members of a task force entrusted with handling alleged unlawful acts in the field of community fund collection and investment management.

As per SWI data, out of the 826 firms that were illegally carrying out operations in 2019, 143 firms were found out to be carrying out illegal peer-to-peer (P2P) lending in July alone.

Last year, 404 fintech P2P lending firms were either not registered or did not have a business license from OJK and “potentially harmed the community”, OJK said.

The task force will accelerate enforcement to crack down on illegal investment actors and fintech firms to protect the interests of the public, SWI Chairman Tongam L. Tobing said at a press conference in Jakarta on Friday, according to the tweets.

Out of the total 1,230 fintech firms SWI closed since it began a crackdown last year, 42% firms could not be located by their servers, 22% originated from within the country, 15% from the United States, and the rest from other countries.

In August, SWI stopped 14 illegal investment entities.

The total number consists of 117 forex trading activities without permission, 13 multi-level marketing without permission, 11 money investments, five cryptocurrency investments, and 31 other investments, OJK said.

Even though SWI has closed these illegal activities, still many new applications have appeared even after they were blocked, SWI said, urging investors to not access them.

by Krishna V Kurup
Senior Market Analyst at IBS Intelligence
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