- The popularity of financial technology (“Fintech”) and particularly peer-to-peer lending services (“P2P Lending”) continues to explode and this relatively new sector of the economy has been experiencing exponential growth of late, with a 700% increase over last year’s figure in terms of total fund disbursement. However, these services also come with various associated risks which P2P Lending customers need to take into account, including personal data leakages, exorbitant interest rates and intimidating debt collection methods.
- Unfortunately, these risks have yet to be accommodated under current Indonesian laws and regulations. Commenting on this issue recently, the Head of the Board of Commissioners at the Financial Services Authority (“OJK”), Wimboh Santoso, explained that regulators were currently working in a highly challenging environment, as on the one hand, they were attempting to formulate a business-friendly Fintech legal framework, while on the other hand, improved consumer protection was also being prioritized.
- Responding to persistently weak legal enforcement as regards Fintech violations, the Vice Chairman of the Indonesian Joint Funding Fintech Association (“AFPI”), Sunu Widyatmoko, has emphasized that a number of loopholes still exist in relation to Fintech legal enforcement, particularly the ongoing lack of any laws which address the areas of personal data protection, Fintech services and trustees. This ultimately means that illegal Fintech players cannot currently be subject to any criminal sanctions.
- For more on this story, see: “Menanti Industri Fintech Lebih Ramah Konsumen”.
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