When Digital Usury Destroys Ethics and Our Dinner Tables

A growing number of Indonesians, especially those in the middle class, are caught in a cycle of debt fueled by digital lending applications and paylater services. While their social media feeds might project an image of affluence with aesthetic cafes and branded goods, many are secretly struggling with mounting debt notifications.

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We are in a terrifying 'survival mode,' where the economic visuals appear to be moving, but at the household level, many are liquidating savings or preventing nutritional needs to make ends meet.

This phenomenon is starkly illustrated by data showing approximately 1.1 million people from the middle class have fallen into vulnerable economic situations within the past year. These individuals often turn to readily available online loans as a quick fix for liquidity issues. However, what begins as a supposed solution quickly morphs into a predatory system that erodes family stability.

The core issue lies in the exploitative nature of the riba (usury) system embedded within these digital platforms. Users face average monthly installment interest rates of 2.95%, compounded by late payment penalties of around 5%. For families with stagnant incomes facing rising food prices, these figures create an insurmountable financial black hole.

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The problem is not just about borrowing money, but the exploitative riba system that works automatically.

Beyond the financial strain, the human cost is significant, marked by severe ethical breaches in debt collection. Data from Indonesia's Financial Services Authority (OJK) via its Consumer Protection Portal Application (APPK) reveals 11,195 complaints, with financial technology spending dominating at 12.01%. Tragic accounts of intimidation, threats, and the public exposure of personal information to a customer's entire contact list are common.

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Humanitarian issues arise when debt collection ethics are brutally violated.

From a universal ethical standpoint, prioritizing debt collection through the violation of human dignity is a grave moral offense. This reliance on usurious digital debt fosters a 'working poor' scenario, where individuals work full-time yet remain trapped in chronic economic anxiety. Funds that should be allocated for children's education or future investments are instead consumed by hidden fees and compounding interest, fundamentally undermining principles of economic justice where wealth should not solely circulate among capital owners.

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Maintaining human dignity for the sake of collecting debt interest is a serious moral crime.