Duh, Student Loans for Tuition Fees Reach Rp450 Billion, KPPU Intervenes

Duh, Student Loan Debt for College Reaches Rp450 Billion, KPPU Intervenes.

Dream - The Business Competition Supervisory Commission (KPPU) will summon four online loan providers (pinjol) that offer the Single Tuition Fee (UKT) payment facility for students.

Duh, Student Loans for Tuition Fees Reach Rp450 Billion, KPPU Intervenes

KPPU will investigate the alleged legal violations in the distribution of funds to the students.

"To address the issue of online student loans, KPPU will soon summon 4 companies or online financing institutions that have disbursed these student loans."

The following is the translation of the given 'Bahasa' text to 'English' while preserving the HTML tags: "words Chairman of KPPU Fanshurullah Asa, quoted from Liputan6.com, Monday, February 26, 2024."

The fourth companies are PT Dana Bagus Indonesia (Danabagus), PT Cicil Solusi Mitra Teknologi (Cicil), PT Fintech Bina Bangsa (Edufund), and PT Inclusive Finance Group (Danacita).

KPPU recorded from the collected data, student loans reached nearly Rp450 billion. As much as 83.6 percent of that amount of funds were distributed by Danacita.

"Previously, KPPU has invited 83 higher education institutions to delve into the issue of student loan distribution on February 19, 2024."

"Fashurullah said, the use of online loan services (pinjol) to pay tuition fees (UKT) is not in accordance with the applicable regulations. It refers to Law No. 12/2012, specifically Article 76."

"Various online student loan products that charge interest or various monthly fees resembling interest with a loan duration as if it were a loan outside of education, are not in line with Law No. 12 of 2012 concerning Higher Education (Law No. 12/2012), which can lead to unhealthy business competition."

"tuturnya." translates to "he/she said."

The following is the translation of the given 'Bahasa' text to 'English' while preserving any html tags: "The regulation states that the Government, Regional Government, and/or universities are obliged to fulfill the rights of economically disadvantaged students to be able to complete their studies in accordance with academic regulations. "One way to fulfill their rights is by providing interest-free loans that must be repaid after graduation and/or obtaining a job," he said."

According to him, the rule is reinforced by the explanation of the law which states that interest-free loans are loans received by students without interest to participate in and/or complete higher education with the obligation to repay after graduation and obtain sufficient income.

"In this case, student loans that impose various interest rates or monthly fees resembling interest, as well as with a certain loan duration, are suspected to be illegal and can result in unhealthy business competition," he emphasized.

Fanshurullah asserts that KPPU, in accordance with its duties and authority, will enforce the law against online companies or financing institutions. If it is proven during the process that they have violated the regulations and created unhealthy competition in the student loan market.

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