Legal Protection of Lenders in the Implementation of Financial Technology Based on Peer to Peer Lending

Abstract

Financial technology based on Peer to Peer Lending (P2PL-based Fintech) is one of the new breakthroughs in financial services institutions in Indonesia. The presence of P2PL-based Fintech is a solution for people who have not been touched by banking but have technology literacy. Therefore, the majority of users are millennial young generation as business people. The parties in P2PL-based Fintech consist of Lenders, Organizers, and Loan Recipients. But in practice, the legal relationship that is formed between the lender and the organizer is only limited to the authorizer, then the lender with the recipient of the legal relationship loan formed is the debt payable. Therefore, the loan agreement is only between the lender and the loan recipient while the organizer as the facilitator who recommends, selects and analyzes the loan provision is not included in the agreement, so the party vulnerable to loss is the lender. Therefore the lender must be protected so that the funds are not lost due to misuse of the organizer or due to the default of the recipient of the loan. This Normative Research uses two approaches namely the law and conceptual approach. The research results are that there are two preventive legal protections for lenders regulated in OJK Regulation No.77/PJOK.01/2016 concerning Information Technology-Based Lending and Borrowing Services and repressive protection in article 37 PJOK. The implications of this research are to provide guidelines for parties in implementing P2PL-based Fintech, especially legal protection for lenders and the prudential principle of the organizers in distributing funds. Keywords: Legal Protection, Financial Technology, Peer to peer Lending

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