OJK: Difficult to Find a Job if You Default on Paylater

Dream - Executive Head of Supervision of the Behavior of Financial Service Providers, Education, and Consumer Protection of the Financial Services Authority (OJK), Friderica Widyasari Dewi, said that failing to repay a paylater loan can make it difficult to find a job.

Paylater is a service to defer payment or borrow money that must be repaid later. She reminds millennials or young generation not to take paylater loans carelessly.

"Of course (it affects job opportunities), if I register with OJK, they will definitely check. I've heard many stories from friends, their children apply for a loan to buy a tablet using paylater, from a small amount of debt it grows into a large amount, and in the end, they have difficulty finding a job," said Friderica to the media, quoted from Liputan6.com, Friday, August 25, 2023.

Paylater Included in OJK's SLIK

Friderica explained that currently the data of paylater loan customers has been included in the Financial Services Authority's Financial Information Service System (SLIK OJK), which was formerly known as BI Checking.

As a result, the reputation of young people and other members of the community can be tarnished if they are categorized as bad credit.

"So, young people should not play around with online debt and then change their phone numbers (thinking) that they cannot be contacted. It's not like that, because it will be recorded in SLIK if it's paylater," she explained.

However, the loan amount from paylater credit is not large, only around hundreds of thousands of rupiah. However, the debt keeps piling up because they are unable to pay the installments.

"They owe a few hundred thousand rupiah in paylater, but it's bad debt. So it's very unfortunate, it's more important to buy a house than to spend on unnecessary things," she said.

Viral Freshgraduates Fail to Apply for Jobs due to Poor BI Checking Score, What is BI Checking?

Dream - Recently, news went viral about a company rejecting five freshgraduate applicants due to their poor BI Checking scores. This was revealed by the Twitter account @kawtuz, where the BI Checking scores were in the Kol 5 category.

So what is BI Checking and how important is the BI Checking score?

Not all companies require BI Checking scores to be checked. Simply put, BI Checking is a check on the historical information of Individual Debtors (IDI), which records the timely or delinquent payment of someone's credit.

BI Checking itself has been renamed the Financial Information Service System (SLIK) due to the transfer of supervision from Bank Indonesia to the Financial Services Authority (OJK).

There are three types of credit included in the BI Checking category: Unsecured Loans (KTA), Home Ownership Loans (KPR), and credit card bills.

So why does being in Kol 5 result in the rejection of freshgraduate applicants by companies?

According to Gramedia.com, the results of BI Checking have scores ranging from 1 to 5. These scores indicate whether someone has payment problems or bad credit. Here is an explanation:

Meaning of BI Checking Scores

- Score 1

Score 1 indicates good credit, which means the debtor always fulfills their obligation to pay installments and interest on time, without any delinquencies.

- Score 2

Score 2 means the debtor is delinquent in repaying credit installments for 1-90 days.

- Score 3

Score 3 indicates bad credit, where the debtor fails to pay credit installments for 91-120 days.

- Score 4

Score 4 indicates doubtful credit, which can occur when the debtor has been delinquent in credit installments for 121-180 days.

- Score 5

Score 5 is the worst level. It means the debtor has defaulted on credit installments for more than 180 days.

If a prospective debtor has scores 3, 4, and 5, they will be included in the BI Checking blacklist, and the bank will consider them to have problematic scores or what is often referred to as Non-Performing Loan (NPL).