Jakarta, CNBC Indonesia – The Financial Services Authority (OJK) signed a Memorandum of Understanding (MoU) with the Indonesian Ministry of Foreign Affairs (Kemenlu), on Tuesday (4/6/2024). The MoU contains several important points related to protecting Indonesia's financial system abroad, one of which is related to online loans (pinjol) and online gambling (judol).

Chairman of the OJK Board of Commissioners, Mahendra Siregar, said that his party was ready to work with the Ministry of Foreign Affairs to provide education and increase inclusion in the financial services sector for Indonesian citizens (WNI) living abroad. This is to free Indonesian citizens from illegal financial services.

“Many Indonesian citizens abroad, especially Indonesian Migrant Workers (PMI), have become victims of illegal financial services activities such as illegal loans and fake investments which are disseminated via digital platforms,” ​​explained Mahendra.

“Then there is an even more serious element of consequence which we are currently intensifying nationally, namely in the context of online gambling.”

Apart from those related to judol and pinjol, there are six other points on which the OJK agreed with the Ministry of Foreign Affairs. Broadly speaking, this is related to Indonesia's economic diplomacy, access to education involving the Indonesian Embassy and Consulate General, as well as strengthening cooperation in forming financial policies with other countries.

“So this overall field covers most work environments, financial services and the financial industry,” he added.

Meanwhile, regarding this collaboration, the Indonesian Minister of Foreign Affairs, Retno Marsudi, explained that this MoU was very important. This is because the Ministry of Foreign Affairs not only protects Indonesian citizens abroad who are trapped in illegal financial markets but also increases the capacity and empowerment of these Indonesian citizens.

“The cooperation between the Ministry of Foreign Affairs and the OJK is directed at increasing literacy and financial inclusion for PMI and empowering them through facilitation and easier access to banking,” he said.

“It is the government's responsibility to continue to ensure protection for PMI from threats such as remittances, investment, money laundering, loans, etc.”

[Gambas:Video CNBC]

(fab/fab)