Jakarta, January 20, 2017 — The Financial Services Authority (OJK), in accordance with the mandate from Law No. 21 of 2011, has been making efforts to protect consumer interests and prevent them and the public from suffering losses from investment offers with dubious legality.

The OJK's efforts to prevent the public from incurring losses from investment offers with obscure legality are expected to raise public trust in the financial sector's products and services.

Kusumaningtuti S. Soetiono, OJK Commissioner for Consumer Education and Protection, said that from the moment Financial Customer Care (FCC) services were launched in 2013 until end of 2016, the OJK has received 801 information and inquiries from the public regarding 484 entities that allegedly committed investment activities without any clear legal status and were not under the OJK's supervision.

Out of those entities, the OJK has managed to follow up information about 217 of them by means of step-by-step monitoring and field observation. However, it is not possible to follow up inquiries on the remaining 267 entities due to limited information that the OJK has received about them. 

Next, out of the 217 entities, now 80 of them have been listed on Investor Alert Portal (IAP) that one can access from a minisite http://sikapiuangmu.ojk.go.id/FrontEnd/AlertPortal/Home and SikapiUangmu mobile site, following the OJK's coordination with the Investment Alert Task Force.

As preventive measures, the OJK has taken steps to raise public awareness on investment practices and characters, especially of those without any clear legal status. For that purpose, the OJK has disseminated information and provided education and knowledge about such investments by running a massive, consistent, and carefully programmed Public Service Advertising (PSA) campaign.

Throughout 2016, the OJK carried out 48 thematic educational activities for communities in 26 cities where they had found many investment schemes that did not have any definite legal status.

On the other hand, the OJK has made efforts to prevent and take actions against these illicit investments by setting up local Investment Alert Task Forces (SWI), following the establishment of a similar task force at its head office.

In addition, the OJK has played an active role in preventing consumers and the public from suffering more losses. Some of the steps it has taken include blocking sites allegedly offering investment opportunities with dubious legal status, conducting joint investigation with SWI members, suspending business activities, carrying out law enforcement measures and embarking upon court proceedings. 

The OJK urges the public to understand investments carry risks and that when choosing any investment, they should always apply the HAPAL (REMEMBER) slogan. The abbreviation stands for three warnings: HAti-hati (BE careful) when an investment product guarantees that it carries no risks and promises unusually high yield, Pastikan (Make sure) that an investment company and its products have proper licenses and legal status and that you understand about its investment schemes, and Laporkan (Report) any suspicious investment offer to the OJK by phone at 1 500 655, or by e-mail at konsumen@ojk.go.id, or waspadainvestasi@ojk.go.id.

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For more information:

Anggar B. Nuraini, Deputy Commissioner for Consumer Education and Protection

Tel: +62 21 2960 0000 Email: b_nuraini@ojk.go.id Website: www.ojk.go.id