Regulations of Lending Business Activities via Online Applications (Peer-to-Peer Lending): Financial Technology Activities in Legal Terms

Abstract

Financial technology is growing rapidly along with the advancement of internet technology. One of the financial technology platforms that is quite popular in Indonesia is peer-to-peer lending or commonly called P2P, the platform provides services that bring together creditors and debtors through digital media. There are a number of problems that arise with peer-to-peer lending activities, thus requiring comprehensive arrangements to protect the interests of all parties. This paper examines how to regulate lending and borrowing business activities through online applications in financial technology activities in the applicable laws and regulations. The results show that peer-to-peer lending is regulated by POJK Number 77/POJK.01/2016, along with other laws relating to electronic transactions, personal data protection, and information management systems as support.