OJK Says Gen Z Is Vulnerable To Pinjol, Mostly For Consumptive Lifestyle

The Financial Services Authority (OJK) highlighted the significant vulnerability of Generation Z to the trap of online loans (pinjol). Around 80 percent of Generation Z considers the ease of obtaining funds as the main factor when they need something. This was conveyed by the Chief Executive of the Supervisory of Financial Services Business Actors' Behavior, Education, and Consumer Protection of OJK, Friderica Widyasari Dewi on Wednesday (7/5/2025) at Brawijaya University (UB), Malang. She explained that the more concerning condition is that 58 percent of Generation Z are motivated to use pinjol for consumptive needs or simply to fulfill their lifestyle. Friderica emphasized that ease of access is the main attraction of pinjol for Generation Z. 

"If we look, 80 percent of Gen Z considers the ease of getting money when they need something. Now, instead of telling people to borrow money, their friends don't necessarily give it to them, so people easily apply for pinjol," she said. "What's bad is that 58 percent of the motivation for using pinjol is for consumptive or lifestyle purposes," continued Friderica. She said the fear of missing out (FOMO) and fear of other people's opinion (FOPO) phenomena are the main drivers of this consumer behavior. The pressure to appear trendy, such as having the latest gadgets or the latest clothes, makes Gen Z feel insecure and take shortcuts through online loans or paylater services without careful consideration of the risks. "Especially at Gen Z's age. 'Wow, why is your cellphone so old-fashioned?' So you feel insecure. 'Wow, why are your clothes like that?' Finally, feeling insecure, you end up doing dangerous behavior," said Friderica while reminding us of the dangers of using paylater. 

Even so, Friderica admitted that the digital literacy of Generation Z is generally very good, but this is not in line with their financial literacy. The big challenge for Generation Z is balancing digital skills with a strong financial understanding so that they are not easily trapped in consumer decisions funded by debt. OJK firmly reminds the younger generation to be wiser in managing their finances and not be tempted by the ease of online loans for non-essential needs. 

Tag: FOPO Friderica Widyasari Dewi Gen Z OJK