OJK urges Gen Z to beware of financial risks in digital age

Jakarta (ANTARA) - The Financial Services Authority (OJK) urged young people on Tuesday to beware of financial risks from heavy digital technology use, including being trapped by online loans and buy now, pay later (BNPL) services.

OJK Chair Friderica Widyasari Dewi said at Sekolah Rakyat Senior High School 10 that Gen Z, the first generation to grow up amid technological development, has great potential to drive the digital economy.

"Gen Z is not only a technology user, but also a driver of the digital economy. That is why OJK is here today to equip you with knowledge about digitalization and finance," Dewi said.

However, she warned that digital skills do not always come with financial management skills.
As a result, some young people risk being drawn into online loans and piling up debt if they do not understand the consequences of such products.

OJK data showed Gen Z, born from 1997 to 2012, makes up about 26 percent of Indonesia's population, or around 75 million people, based on 2026 civil registry data.

As many as 41 percent of young people admitted losing track of BNPL payment obligations every month, 39 percent used the service for nonessential purchases, and 52 percent said it encourages overspending.

"Many Gen Z are exposed (to BNPL) and already have a lot of debt from online loans, which can be dangerous if they do not learn soon," Dewi said.

The data also showed that 52 percent of Gen Z trust influencers for financial information, 56 percent trust social media and 64 percent use artificial intelligence (AI) platforms for information.

This underscores the need to verify financial information before making decisions.

Through OJK's Digiclass program, run with the Communication and Digital Affairs Ministry and the Central Information Commission (KIP), young people can learn about debt risks, budgeting and telling needs from wants.

OJK expects Gen Z to use digital financial services wisely and strengthen its role in the economy.

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Translator: Fitra, Kenzu
Editor: Rahmad Nasution
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