Jakarta-The high usage of the internet, along with government policies and regulations supporting the growth of the digital economy, has become a strong foundation for the rapid advancement of FinTech in Indonesia. However, there are parties who exploit it solely for personal gain and harm the community.
“P2P lending, often known as online loans that offer loan transactions and digital financing, is one of the business models emerging from the advancement of financial technology.” “It has been very popular among the Indonesian people in recent years,” said Tasya Aqeela Kailani from the Faculty of Administrative Sciences at the University of Indonesia (UI), in a written statement on Wednesday (12/4/2024).
The ease and efficiency offered by online loans have successfully captivated the Indonesian public, who feel burdened by the difficulty of accessing financial services due to the numerous formal administrative requirements that involve long and complicated processes.
Efforts to ensure that business ethics are well implemented by online loan businesses have been carried out by the Financial Services Authority (OJK) as the institution that regulates and supervises the financial services sector using a compliance approach. OJK uses the regulations issued to manage and control ethical management in this fintech business.
All online loan businesses must be registered and directly supervised by the OJK, with provisions for interest rates and maximum penalties that cannot be excessively high, protection of personal data access where licensed online loan businesses are only allowed to access the user’s location, microphone, and camera, and in the collection process, the loan collectors need to have an AFPI collection license.
In upholding business ethics as mandated by the Financial Services Authority Regulation (POJK) Number 77/POJK.01/2016, the OJK emphasizes that fintech entities need to apply fundamental principles for user protection that align with business ethics principles, namely transparency, confidentiality and data security, fair treatment, reliability, and resolution that is simple, fast, and cost-effective.
Online lending businesses that are already licensed by the OJK are indeed closely monitored by the OJK regarding the ethical business aspects they implement.
The rapid development of information and the ease of access provided to the public without the strength to educate and inform them on how to sort and choose online loans that are already licensed by the OJK. This has become one of the reasons for the emergence of illegal online loan issues.
Leave a Reply