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Career, credit risks of ‘pay later’ services spook young Indonesians
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A growing number of young Indonesians have become concerned about how online loans could impact their futures, as companies begin scrutinizing prospective employees’ credit scores and banks deny loans to would-be homebuyers over their online debt histories. (Shutterstock/Zapp2Photo)
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growing number of young Indonesians have become concerned about how online loans could impact their futures, as companies begin scrutinizing prospective employees’ credit scores and banks deny loans to would-be homebuyers over their online debt histories.
Social media users scrambled to check their credit scores on Aug. 21 after a user on X, formerly known as Twitter, shared that five prospective employees applying for a job at her workplace, a financial institution, had been rejected over their bad credit history.
“All five of them did not make it because our BI [Bank Indonesia] Checking showed that they were Kol 5 members,” user @kawtuz wrote on X on Aug. 21.
BI Checking, now called SLIK OJK since the Financial Services Authority (OJK) took over responsibility for the program in 2018, refers to a database of consumers’ credit histories with financial institutions under the OJK’s supervision, including banks and multifinance firms.
“Kol”, meanwhile, refers to a five-tier ranking of the collectability of a person’s loans. Kol 1 shows a healthy ability to service one’s debts, while Kol 5 shows that a person’s loan payments are severely overdue.
A number of social media users had questions about how and where these metrics were being used.
