TIMESINDONESIA, BANDUNG – Realization of Receivables from the Financing Institution sector in West Java province on August 31 2024 reached IDR 79.78 trillion or positive growth of 10.63 percent (yoy), with the Non-Performing Financing (NPF) ratio still maintained at level 3.06 percent.

Based on type of use, financing receivables are dominated by Multipurpose financing at 62.45 percent, followed by Investment financing at 22.81 percent and Working Capital financing at 8.77 percent.

Meanwhile, from the Pension Fund sector, as of July 2024, the investment value of pension funds in West Java Province was IDR 25.42 trillion, a decrease of IDR 1.17 trillion (-4.52 percent yoy) compared to July 2023 of IDR 25.83 trillion.

When compared with December 2023, the realized investment value also decreased by IDR 0.95 trillion (-3.71 percent ytd). The same thing also happened to the value of Pension Fund Company Assets in West Java Province as of July 2024, where Pension Fund Company Assets reached IDR 25.52 trillion, a decrease of IDR 1.29 trillion (-4.84 percent yoy).

"In the Fintech peer-to-peer lending (P2P) sector, as of July 2024, outstanding P2P company loans in West Java Province amounted to IDR 18 trillion, an increase of IDR 2.76 trillion (18.08 percent yoy) compared to July 2023 of IDR 15, 24 trillion. When compared to December 2023, outstanding P2P loans increased by IDR 1.41 trillion (8.51 percent ytd). The quality of P2P loans in West Java Province is reflected in the 90-day Default Rate ratio (TWP90) from 4.14 percent in "In July 2023 it will be 3.09 percent in July 2024. However, the TWP90 ratio is worse compared to the national level of 2.54 percent," said Imansyah, Head of the West Java OJK, Thursday (10/10/2024).

Financial Literacy and Inclusion and Consumer Protection Program

According to Imansyah, until September 30 2024, the West Java Province OJK Office has held a series of financial education activities in an effort to increase public financial literacy. There were 347 activities with a total number of educational participants of 102,642 people consisting of various segments including pupils, university students, Islamic boarding school students, employees and ASN, farmers, MSMEs and people with Social Welfare Problems (PMKS), namely the Street Artists Community, as well as special segments including others. People with Disabilities, the ojol community and the general public.

He also explained that one form of service from the West Java Province OJK Office to consumers and the public is through the Financial Information Service System (SLIK) information service. As of September 30 2024, a total of 33,554 SLIK services have been provided to consumers and the public in the West Java region, consisting of 22,963 SLIK requests directly (walk-in) and 10,591 online SLIK requests.

Imansyah provided information that in an effort to eradicate illegal financial activities, from January 1 to September 24 2024, OJK had received 12,733 complaints regarding illegal entities. Of this total, 12,021 complaints were regarding illegal online loans and 712 complaints were related to illegal investments.

The number of illegal entities that have been stopped/blocked is 1,459 (Illegal Investments) from 2017 to September 2024. Next are Illegal Loans at 9,180 in the same year span, then illegal mortgages at 251. And the total that has been stopped is 10,890 from 2017 to September 2024.

According to the Head of the West Java OJK, in order to enforce consumer protection provisions, the OJK has imposed sanctions through the Task Force for Eradicating Illegal Financial Activities (Satgas PASTI) in the period January to 23 September 2024 to find and stop 2,500 illegal online loan entities and 241 illegal investment offers in a number of sites and applications that have the potential to harm society. Furthermore, the PASTI Task Force has received information regarding 228 bank accounts or virtual accounts that were reported to be related to illegal financial activities.

He also explained that in connection with this matter, the PASTI Task Force submitted a blocking request to the bank supervisory work unit at the OJK and then immediately ordered the relevant banks to carry out the blocking.

Imansyah informed that apart from blocking bank accounts or virtual accounts, the PASTI Task Force also found contact numbers for debt collectors related to illegal online loans who were reported to have carried out threats, intimidation or other actions that were contrary to the provisions. Apart from that, due to these conditions, the PASTI Task Force has proposed blocking 995 contact numbers to the Ministry of Communication and Information of the Republic of Indonesia.

"In terms of monitoring PUJK behavior (market conduct), the West Java Provincial OJK Office has enforced the provisions as regulated in POJK Number 22 of 2023 concerning Consumer and Public Protection in the Financial Services Sector, including by giving administrative sanctions to 25 (twenty five) PUJK, namely the existence of administrative sanctions in the form of fines and written warnings for late reporting; and administrative sanctions in the form of written orders regarding the results of direct/indirect supervision related to violations of consumer protection provisions, especially regarding the provision of information in advertising and product/service marketing procedures," said Imansyah.

"The administration of administrative sanctions is carried out in the context of guidance so that PUJK always complies with provisions related to consumer and community protection. In the future, the West Java Provincial OJK Office will continue to pay close attention to the dynamics of the developing economy and improve its supervisory function for financial service institutions, as well as protection for consumers and community to ensure that the financial services sector's contribution to economic growth in West Java Province can continue to be maintained," concluded Imansyah closing the conversation.

(SOURCE)