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Kominfo Blocks Access to 4,873 Illegal Fintech Content Since 2018

The Ministry of Communication and Information (Kominfo) continues to increase cooperation with the Financial Services Authority (OJK) of Bank Indonesia as well as ministry and agency partners in ridding Indonesia’s digital world of the existence of unlicensed or illegal financial technology.

According to the Minister of Communication and Information (Menkominfo) from 2018 to October 10, 2021, there has been a termination of access to 4,873 online fintech content that violates laws and regulations and is spread across various platforms.

The government and partners will not make room for any fintech content that is not in accordance with applicable laws and regulations.

“We both have a duty not to make room for illegal content or content that is not in line with the laws and regulations. So that our digital space becomes more beneficial to the interests of our society, and used to the maximum for the progress of our economy,” explained the Minister of Communication and Information in OJK Virtual Innovation Day 2021 virtually from Jakarta, Tuesday (12/10/2021).

The 4,873 online fintech content is spread across various platforms such as websites, marketplaces, applications, social media and file sharing services. The Minister of Communications hopes that law enforcement over the rise of illegal content can encourage the use of digital platforms that are increasingly useful.

“We hope that the enforcement of digital space law like this will encourage fintech to be utilized properly, used for the benefit and development of our national economy and finances,” he said.

Moreover, Kominfo continues to invite Electronic System Organizers (PSE) and the public to take anticipatory steps to develop technology. This is to prevent data leaks and strengthen firewalls to ward off cyber attacks and set up digital infrastructure.

“The utilization of digital infrastructure for various digital transactions is done to support secure digital finance,” said Minister Johnny.

Responsibility of the Organizer

In Law No. 11 of 2008 on Information and Electronic Transactions along with the provisions of changes and implementation, the Ministry of Communication and Information stipulates the registration obligations of PSE, including those that organize financial services.

“This provision applies to PSE both domestic and foreign, including public or private spheres, either conducted by the government or state institutions or conducted by non-state or private institutions,” explained the Minister of Information.

Minister Johnny pointed out, the Ministry of Health as a Public Scope PSE in the implementation of The PeduliLindungi application is required to apply for registration at the Ministry of Communication and Information, as well as dedicate the use of the electronic system for public services.

“As a PSE PeduliLindungi application, the Ministry of Health, development partners, and BSSN also need to take measures to protect personal data and prevent the occurrence of personal data leaks,” he explained.

As for the provisions of the implementation of the private scope pse, the Minister of Communication and Information confirmed that it is fully regulated in the Regulation of the Minister of Communication and Information No. 5 of 2020 concerning the Organizer of Private Scope Electronic Systems, as well as the changes which are translations of PP 71/2019.

“In addition to requiring the registration of PSE, PM Kominfo No. 5 of 2020 also requires that PSE ensures that the content managed in its electronic system does not violate laws and regulations, and provides electronic system access for the benefit of law enforcement,” he said.

Strengthen Collaboration

Citing data from the State Cyber and Password Agency (BSSN), Minister Johnny stated that throughout 2021 there were 888,711,736 cyber threats in Indonesia or equivalent to 42 threats every second. While data from Stanford University in a 2020 study also recorded 88% of conceded and cybersecurity breaches caused by human negligence or human error.

“Other challenges in the digital space are also characterized by the rampant spread of various kinds of negative content, including online fraud which is often a problem in the fintech world,” he added.

Therefore, to support the development of the digital economy, the Minister of Communication and Information stated that the Digital Economy Forum of the Ministry of Communication and Information (FEDK) has been established as a forum for discussion and sharing of ideas between the Ministry of Communication and Information and partners. According to Minister Johnny, in the second FEDK that took place some time ago has been discussed about the fintech sector and online lending in Indonesia.

“We received various reports of issues from fintech industry players, including related to data governance, the development of the fintech industry, including the termination of access to illegal services, education to the public and cybersecurity,” he said.

According to the Minister of Information, FEDK is held regularly as a platform of communication, coordination, and government collaboration with various technology companies from various industries.

“In the future, FEDK will invite digital industry players from various sectors to improve the quality of policy making, and government work programs related to the digital economy ecosystem in Indonesia,” he explained.

In addition to discussing aspects of governance and enforcement, the Ministry of Communication and Information also continues to strengthen the digital capabilities of the community. “Included in the issues of the digital financial sector through the development of human resources or digital talent,” he said.

In addition to Minister Johnny, the OJK Virtual Innovation Day 2021 event with the theme Building Robust and Sustainable Digital Finance Ecosystem Amid Covid-19 Pandemic was also attended by Deputy Chairman of the Board of Commissioners of the Nurhaida Financial Services Authority, and Bank Indonesia Governor Perry Warjiyo.

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