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h andi hamzah machmud

Business

Baubau Warns Residents Against Illegal Financial Apps & Investment Scams

by Priya Shah – Business Editor February 23, 2026
written by Priya Shah – Business Editor

The Baubau City Government, through its Communication and Informatics Office (Kominfo), has issued a warning to residents about the increasing prevalence of illegal financial applications, as concerns grow over potential financial losses.

Kominfo Baubau Head, H Andi Hamzah Machmud, urged citizens to exercise caution when considering digital investments, stating that promises of high returns in short periods are often deceptive. He emphasized the importance of careful consideration before investing any capital.

The warning extends to the downloading and installation of applications from unclear or untrusted sources. “Before investing, the public should first ensure the legality of the company, check the reputation of the service provider and fully understand the potential risks,” Machmud stated.

Kominfo is also advising residents to pay close attention to the permissions requested by mobile applications, specifically concerning access to cameras, microphones, and location data – collectively referred to as “CAMILAN” (Camera, Mic, dan Location). Excessive access granted to suspicious applications could compromise personal data security, officials warn.

Machmud stressed that protecting data security is a crucial first step in mitigating potential losses. The initiative is a collaborative effort between Kominfo Baubau and the Financial Services Authority (OJK), aimed at providing public protection and financial literacy education.

This collaboration seeks to improve digital financial literacy, particularly in recognizing the characteristics of illegal investments frequently promoted through applications and social media. Residents with doubts about an investment opportunity are encouraged to confirm its legitimacy with OJK or consult with local government authorities.

Kominfo Baubau has received reports from OJK regarding investments gaining traction among Baubau residents that have not been officially registered. Law enforcement agencies have also initiated investigations into these matters.

A team from OJK is scheduled to visit Baubau on Tuesday, February 24, 2026, to conduct socialization and education sessions for the public, government officials, and stakeholders. The OJK’s presence is expected to provide recommendations and address public concerns regarding illegal investment practices in the city, also known as Sara Patanguna.

Recent efforts by Kominfo Baubau include strengthening the Electronic-Based Government System (SPBE) and cybersecurity measures, with all IT procurements within the Baubau City Government now requiring technical specification verification by the Kominfo office, according to a February 6, 2026 report. A January 28, 2026 meeting led by Machmud focused on preparing the 2026 perform program and adjusting the department’s structure.

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