Legal Protection for Investors in Peer-to-Peer Lending Financial Technology Following the UU P2SK

Abstract

The growth of peer-to-peer lending in the financial technology sector has been rapid, but it has been accompanied by various risks that threaten the interests of investors or fund providers known as lenders ranging from default risks and a lack of transparency in risk mitigation to the prevalence of illegal online lending practices. The enactment of Undang-Undang Nomor 4 Tahun 2023 tentang Pengembangan dan Penguatan Sektor Keuangan has brought fundamental changes to the legal framework for P2P lending fintech, including by affirming its status as part of the Financing Services Business, which is subject to direct regulation and supervision by the Otoritas Jasa Keuangan (OJK). This study aims to analyze the form of legal protection for P2P lending fintech investors following the enactment of the  UU P2SK. This study employs a normative legal research method using a statutory and conceptual approach, supported by a literature review of laws and regulations, court decisions, and Scopus-indexed academic literature. The results show that the UU P2SK strengthens the legal foundation for P2P lending fintech through requirements for business licenses from the OJK, membership in directly supervised associations, a prohibition on operators acting as both lenders and borrowers, and the strengthening of enforcement measures against illegal online lending. Legal protections for investors still face challenges, particularly regarding the allocation of default risks which are largely borne by investors the lack of certainty in enforcing penalties against operators whose business licenses have been revoked, and the suboptimal integration between the UU P2SK and the Undang-Undang Perlindungan Data Pribadi. This study recommends strengthening further technical regulations, improving the transparency of risk management, and reinforcing dispute resolution mechanisms that favor investors, who are structurally in a weaker position than platform operators.