East Java urges tighter personal data safeguards amid rise in illegal online lending complaints

The East Java provincial legislature has called for enhanced data security measures following a surge in complaints related to illegal online loans, highlighting concerns over identity abuse and the need for stronger governance.

East Java’s provincial legislature has urged the local administration to tighten personal data safeguards after a surge in complaints about illegal online lending raised fresh concerns about identity abuse.

Saifudin Zuhri, a member of the East Java Regional Legislative Council’s Commission A, said the volume of complaints suggests authorities need to close the gaps that allow residents’ details to be misused by illegal lending operators. Data from Satgas PASTI East Java showed 2,356 complaints related to illegal online loans between January and June 2026, according to reports from local outlets covering the council’s comments.

Saifudin said the figure should not automatically be read as proof that every case stems from a data breach. Even so, he argued that the scale of complaints is a warning sign and that the province needs more rigorous security checks on systems that store and process citizens’ information. He also said data protection cannot rely on technology alone, adding that governance rules, access limits and audit trails are equally important.

The proposal aligns with Indonesia’s Personal Data Protection Law, which sets out obligations for data controllers to keep personal information secure. In practice, the call from the East Java council reflects a broader concern that names, identity card details and photographs of identity documents can be used to support fraudulent loan applications if access controls are too weak.

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