“I just received a loan offer of Rp 5 million,” said Sutini, 35, on Tuesday. Sutini runs a stall on Jl. Juanda in East Bekasi. Sutini said she turned down the offer right away since the interest was pegged at more than 10 percent with a minimum of eight installments. If she took the loan, she would have to repay Rp 8 million to the loan shark.

“A loan like that is the same thing as strangling a customer to death because the interest can be half of the total loan amount,” said the woman who originates from Sukabumi in West Java.

According to her, easy procedures and requirements, such as ID cards and family cards, might tempt customers, but the risk of failing to repay the debt could cost customers dearly since the debt collectors might come to seize goods that have the same value as the installment.

Similarly, Sulastri, 40, said she received phone messages every day offering her cash for the Idul Fitri celebrations.

Sulastri said she felt annoyed by the messages and suspected that phone credit vendors had given her phone number to loan sharks in exchange for a small fee.

Sulastri said she opted to ignore the messages.

“I am done with loan sharks. The interest rate is unreasonably high,” said the owner of small eatery in Rawalumbu.

Aceng Solahudin, head of the Bekasi Industry, Trade and Cooperatives Agency, acknowledged the reality of rampant shadow banking involving loan sharks ahead of Idul Fitri in Bekasi.

Aceng attributed the phenomenon to rising demand from the people. “The loan sharks cash in on people’s consumption, which is on the rise.”

He advised people not to take the loans in order to avoid falling victim to loan sharks. (dmr)

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