By Eko B. Supriyanto, Chair of Infobank Media Group
DON’T be surprised how much public money has evaporated over the last 5 years. The amount, according to the Investment Alert Task Force, reached IDR 123 trillion. The amount of “fake” investment will certainly be bigger, if you add up the losses to the people with official institutions such as insurance, cooperatives and robots.
People who want to get profit, on the contrary get stumped. Not only insurance is a “tuyul” (invisible creatures that steal money), cooperatives are also stealer “penilep” of people’s money. Also, online “pesugihan” (rituals that are believed to be used to gain instant wealth through shortcuts) which translated by profit-making robots. Even though this online “pesugihan” has subsided, whispers still exist in the community. Selling from cafe to cafe, from hotel to hotel.
Meanwhile, credit financial deepening in Indonesia is still relatively low compared to ASEAN countries. Also, it is still low compared to the G20 Countries. Indonesia’s credit per GDP is still in the range of 35-36 percent. Compared to Singapore, Thailand, Malaysia and Vietnam which have exceeded 100 percent.
Not only credit, in terms of funds, assets, pension funds and capital market capitalization, this financial deepening which is still shallow should be a big opportunity for the development of the Indonesian economy. The increase in financial inclusion is not matched by an increase in financial deepening.
Moreover, credit financial deepening in Indonesia is more influenced by consumption credit. Thus, bank credit, which is also related to financial services, only has low explosive power towards quality economic growth.
The financial deepening sector is low, but the deception still exists. Not only from official institutions, but also from illegal ones. From year to year increasingly visible. In the insurance sector, there are Wanaartha Life, Kresna Life and the last one, it is reported that Asuransi Indosurya is also leaving “dirt” following KSP Indosurya, previously, there are KSP Langit Biru and KSP Pandawa.
There are always victims falling every year. Fraudulent investments or often called dark banks or shadow banking – institutions that act like banks. Many KSP (Saving and Loan Cooperative) disguised as dark banks.
A thousand ways are used to deceive people. Not only sophisticated with robots or online “pesugihan”. But, also by using a sharia approach. For example; Kampung Kurma, Yalsa Boetique and the most phenomenal is First Travel. One thousand and one underlying used. While the small ones is “Arisan Lebaran” in the villages.
During the 44 years that Infobank was founded, every year there are many victims of this shadow banking. There is greed in humans that is deliberately exploited in the midst of low law enforcement. In charge completed. The loss of people becomes a sad memory. For example, if someone is arrested for stealing “menilep”, it is certainly that the investor’s money will disappear. The legal process, then detained, next is finished. There’s rarely any money back.
Bernard Madoff, the biggest fraudster on Wall Street in 2008 – when the US was hit by a financial crisis – used the same method. Ponzy scheme used. Some are official and some are unofficial. But when Madoff’s deception was uncovered, the law was handed down for 150 years. And, Medoff’s remaining wealth is divided proportionally.
Things that never happened in Indonesia. Never being sentenced to 150 years, maximum sentences are rare. The First Travel case is the first case to be sentenced to 20 years. However, during the appeals process, the sentence was lighter.
The last two years the Infobank Institute took notes, that the entry of young people using trading robots – or online “pesugihan”. For example, Fahrenheit by stealing IDR 5 trillion of investor money with young victims.
All of that from the public fund side. Meanwhile, from the credit side, it is more torturous. The presence of online loans – honestly, it accelerates the improvement of financial services to the public. Bank penetration into the community is much lower than online loan penetration. Or, often called online loan sharks.
But unfortunately, some online loans are legal and some are not. Then, the emergence of terror to society. Then, it sounded like there was money laundering in online loans. However, the point is that people are victims of financial “torture”. There is terror and loan shark practices. This is still going on. The practice of money laundering through online loan “Pinjol” is increasingly widespread in Indonesia.
The rapid penetration of online loans has an effect on financial inclusion. There has been an increase in financial inclusion. See data from Financial Services Agency (OJK) National Financial Literacy and Inclusion Index which continues to increase. In 2013 inclusion reached 59.74%, in 2016 it reached 67.8% and in 2019 it reached 76.19%.
Unfortunately, increased financial inclusion is not matched by financial literacy. Although literacy has also increased, its position is still low. In 2013 literacy was 21.84%, 29.7% (2016), and in 2019 it was 38.03%. Programs carried out by Financial Services Agency (OJK), banks and financial institutions are able to increase inclusion and literacy. However, it is necessary to see the effectiveness of the outreach program in the electoral area with members of the DPR wrapped in an educational program. That’s fine, but literacy goals are a priority and not a program formality.
Inclusion is increasing, literacy is climbing. However, there is still a wide gap between inclusion and literacy. Even deeper, there are still literacy gaps between regions, such as Jakarta, Surabaya and eastern Indonesia. Well, this is where people still need understanding about the ins and outs of finance.
The basic question is why financial literacy and inclusion are increasing but there are more victims, both from funds and credit. Even worse, there are many victims from official institutions such as insurance and Saving and Loan Cooperative (KSP) who have licenses. The ups and downs in unit link sales stem from low literacy used by commission-based insurance marketers. The important its sold. Point.
Throughout 44 years, and day by day the victims are getting bigger. The value of the loss is getting bigger. Various forms of mode also vary. The underlying is no less different, even using religion. To be honest, even though literacy has increased, and inclusion has also increased, there are still victims.
Don’t know what has happened to the Indonesian people, the owners of money have been exposed to fraudulent investments. And, those who don’t have money are exposed to online loans. In fact, can it be called increased inclusion, one of the consequences of this online loan is resulting in new poverty.
The loans made by the people are not for productive purposes, but for consumptive needs, buying mobile phones, lifestyle and consumption. Impoverishment occurs when you have to bear the ensnaring burden of interest.
The question is that loans that expand in small communities make the borrowers richer or make them poorer because of the interest. Pretending to be rich because of loans – please ask the teachers and civil servants. Also, the soldiers almost certainly have loans. Whether from banks, leasing or cooperatives.
The more people served by credit, the better. However, what needs to be moved is not to let online loans become a new engine of impoverishment for the people of Indonesia. Also, do not let this increased literacy – because the gap is still large, it becomes an opening for the growth of shadow banking or dark banks. Especially in the midst of a law that is not in favor of the victim who owns the money.
Fraudsters in the money sector should be punished like Bernard Madoff with the maximum punishment. That’s the best way to close the gap between literacy and inclusion. If necessary, the maximum punishment plus paying in full is up to seven generations.
Happy 44th anniversary of Infobank which continues to witness frauds in the financial sector, the losses are increasing due to soft law. Therefore, Infobank always emphasize carefully before buying. Fraudsters in the financial sector are not only legal but also illegal.
Don’t let shadow banking outlive. Moreover, Indonesia is still shallow in its financial sector. (*)