OJK Boosts Efforts to Combat Fraudulent Investments Amidst Record Losses

MAKASSAR, RAKYAT NEWS— The Indonesian Financial Services Authority (OJK) has urged the public to exercise caution and remain vigilant against illegal investment schemes that pose substantial financial risks.

Losses from illegal investments in Indonesia have surged to IDR 139.67 trillion from 2017 to 2023.

In 2023 alone, the OJK reported a staggering IDR 603.9 billion in losses from fraudulent investment schemes.

In response to tackle the problem, OJK held an outreach and educational event titled “Financial Literacy: Smart Investment Strategies and Avoiding Illegal Schemes” in Makassar on August 8, 2024.

“Investing is not a game or gamble but requires a solid understanding of financial principles and strategies. Avoid being lured by unrealistic promises of high returns on social media,” warned Irhamsyah, Executive Analyst at OJK, during the event

He highlighted the critical need for vigilance against illegal online lending (pinjol) operations, noting that 8,271 such entities have been blocked, with only 98 having official licenses.

In addition to illegal online lending, OJK has identified 1,367 cases of fraudulent investments and 251 cases of illegal pawnshops from 2017 to July 2024.

To combat these illicit activities, OJK has executed 2,577 blocks up in July 2024, targeting applications, bank accounts, and related contacts.

Jeffrey Hendrik, Director of Development at the Indonesia Stock Exchange (IDX), reported that Indonesia now has 13.2 million investors with a total investment value of IDR 12,300 trillion. Daily transaction values on the exchange reach IDR 12 trillion. The IDX remains committed to protecting investors through enhanced financial literacy efforts.