Indonesian immigration authorities have detained 17 foreign nationals suspected of operating an online personal lending business from a villa in Dalung, North Kuta, Badung, Bali.
The group comprises 15 Malaysian nationals and two Singaporean nationals. They are suspected of misusing their residence permits to carry out administrative activities for an online lending operation targeting borrowers outside Indonesia.
The arrests were made by the Ngurah Rai Immigration Office during an operation at the villa on Thursday, 22 October. The case was announced at a press conference on Monday, 26 October.
Head of the Ngurah Rai Immigration Office, Muhamad Novyandri, said the authorities had received intelligence regarding suspected immigration violations involving foreign nationals at a property in Gang Batu Lumbung, Jalan Raya Dalung.
“We do not discriminate when taking action against foreign nationals who misuse their residence permits to work illegally,” Novyandri said.
Immigration Officers Discover Suspected Online Lending Headquarters
According to immigration authorities, officers monitored the villa for several days before conducting the operation.
During the raid, officers reportedly called the occupants three times but received no response. They subsequently forced open the villa’s front door.
Three occupants allegedly attempted to escape by jumping over the rear wall. However, immigration officers stationed around the property prevented them from leaving.
A search of the villa’s second floor revealed three rooms equipped with computers, laptops, mobile phones, monitors and USB flash drives. Officers also found travel documents, a safe and cash, which are being examined as part of the investigation.
Preliminary findings suggest that the operation was managed by three individuals who acted as managers, while the remaining 14 worked as administrators.
The group allegedly advertised its lending services through Facebook, directing prospective borrowers to various WhatsApp numbers.
Applicants were reportedly asked to provide personal information, including employment details, salary slips and emergency contacts. The information was used to assess their profiles and determine the interest rates offered.
“They provide loans with interest rates ranging from 20 to 30 per cent, depending on the customer’s profile,” Novyandri said.
Foreign Borrowers Targeted as Investigation Continues
Immigration authorities said the suspected operation targeted foreign nationals living outside Indonesia. Initial findings have not identified Indonesian citizens among the borrowers.
The group reportedly had a monthly profit target of US$7,800, while each foreign national was estimated to earn between US$1,200 and US$1,600.
Authorities believe the operation may have been running for approximately six months.
However, investigators are still examining the evidence and determining whether other locations were involved.
The 17 foreign nationals are currently being held at the Ngurah Rai Immigration Office’s detention facility while further investigations are conducted.
They are suspected of violating Article 75(1) of Indonesia’s Law No. 6 of 2011 on Immigration, relating to the misuse of residence permits.
Authorities are also investigating allegations that false information was provided during the visa and residence permit application process.
Administrative sanctions may include deportation and placement on Indonesia’s entry blacklist, subject to the findings of the investigation and applicable regulations.
Bali immigration authorities have reiterated that foreign nationals must comply with Indonesian immigration laws while staying in the country.
