REGULATING P2P LENDING IN INDONESIA: LESSONS LEARNED FROM THE CASE OF CHINA AND INDIA

Abstract

P2P lending industry in Indonesia has undergone a significant growth in the past two years. The growth of the sector has been perceived positively by public and the government. With the very first P2P lending regulation has just being released in late 2016, the sector is still in its early phase. Yet, there are possible necessities to institutionalize P2P lending service platform, as possible various service and business model of P2P lending and fintech in general may come in hindsight. This research is intended to see possible lessons learnt on regulating P2P lending sector, based on the case of China and India. The feasibility on implementing such lessons is then being discussed through Actor and Network Analysis approach. The result shows that among the three countries compared, Indonesia which adapted a functional regulatory supervision approach is seen as having more stabilized and best adapted financial services regulatory system compared to China and India. Lessons learned therefore are to focus their current regulatory directions and goals set out by central regulators. The result of Actor and Network Analysis suggested that in order to continue such regulatory goal, collaborations and growth theme should be fostered in the ongoing regulatory framework in order to accommodate the interest of borrowers, P2P Lending Owner, and collaborative partners.

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