Jambiflash.com – It has been revealed that many young people are trapped in loan sharks due to their lifestyle. The Financial Services Authority (OJK) has identified several factors that lead Generation Z to fall into online loans.
The Financial Literacy and Inclusion Survey (SNLIK) conducted by the Financial Services Authority (OJK) and the Central Statistics Agency (BPS) recorded that the financial literacy rate of Indonesians aged 15-17 years is 51.70%, with financial product/service inclusion reaching 57.96%.
This figure is lower than the average financial literacy rate of Indonesians in 2023, which is 65.43%. Meanwhile, young people aged 26-35 have a literacy rate of 74.82%, with inclusion reaching 84.28%.
Friderica Widyasari Dewi, Chief Executive of Financial Services Business Conduct Supervision, Education, and Consumer Protection at OJK, acknowledged that those aged 15 to 17 are vulnerable to becoming victims of online loans and online gambling.
Kiki, her nickname, mentioned a YOLO lifestyle favored by young people, which is considered to jeopardize their future, especially when driven by FOMO (Fear of Missing Out), an anxiety that arises because something interesting and enjoyable is happening.
YOLO, or You Only Live Once, is a popular phrase suggesting that one should enjoy life to the fullest since ‘you only live once,’ leading to high-risk decisions.
“They (young people) need something to satisfy FOMO and YOLO, but they are not well literate. This is dangerous,” Kiki said at the BPS Building, Central Jakarta, on Friday (August 2, 2024).
Kiki acknowledged receiving information about various lifestyles of young people who are willing to maintain appearances to cover up their financial incapability.
“I received information that young people get trapped in online loans because, when they eat at cafes or hang out with their lifestyle, suddenly they realize they don’t have enough money. (Then) with a quick thumb, they immediately apply for an online loan that disburses in 15 minutes. This actually snowballs (the loan), and they get trapped in debt,” she explained.
For her, this is a collective task. Young people, Kiki continued, need guidance to avoid falling into wrong financial understandings.
“OJK includes online loan data into SLIK. If they do not perform (in SLIK), they will be captured, which will be dangerous when they apply for jobs or do other things,” Kiki stressed. (uda)
