Indonesia's Financial Services Authority summons Indosaku and AFPI and orders special examination over alleged unlawful debt collection

Indonesia's Financial Services Authority (OJK) has summoned online lending provider PT Indosaku Digital Teknologi and the Indonesian Fintech Funding Association (AFPI) following allegations that a debt collector in Semarang violated collection rules, and reiterated its rejection of any collection practices that breach ethics, the law, or consumer protection requirements. The meeting sought explanations and clarifications from Indosaku and AFPI regarding circulating information on the company’s alleged links to the incident. OJK will carry out a special examination of Indosaku and apply sanctions if breaches of collection processes or mechanisms are proven. AFPI and its Ethics Committee were asked to investigate and impose blacklist sanctions on any third-party collection service provider involved, while Indosaku was instructed to conduct a comprehensive review of its collection practices and third-party arrangements. The release also restated that financial services firms remain responsible for the acts of appointed third parties, prohibited intimidating or threatening collection methods and conduct that humiliates or degrades consumers, and referenced OJK Regulation Number 22 of 2023 on consumer protection. OJK will continue coordinating with relevant agencies, and said it will take compliance enforcement action in line with applicable laws if the special examination finds violations, including administrative sanctions and other supervisory measures.