Implementing Framework for P2P Lending Service Business Introduced: Maximum Economic Benefit Rates and Collection Mechanism Clarified

On 29 June 2022, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) introduced Regulation No. 10/POJK.05/2022 on Information Technology-Based Co-Funding Services (“Regulation 10/2022”), which set out an updated regulatory framework that accommodates various developments relating to the organization of peer-to-peer (“P2P”) lending services within Indonesia.[1] Following the introduction of this framework, the OJK has now decided to further clarify various aspects that specifically relate to the above-mentioned P2P services through the issuance of Circular No. 19/SEOJK.06/2023 on the Organization of Information Technology-Based Co-Funding Services (“Circular 19/2023”), which has been in force since 8 November 2023.[2]