Respect The Supreme Court's Decision On Pinjol, OJK Will Strengthen Fintech Management P2P Lending

JAKARTA - The Financial Services Authority (OJK) respects the decision of the Supreme Court (MA) regarding the lawsuit against the citizens of lawsuit for online lending practices submitted by the plaintiffs since 2021. This is mainly related to the regulation and supervision of fintech P2P lending. In the decision of the Supreme Court Number 1206 K/PDT/2024, among others, asking the OJK to make regulations and strengthen supervision to ensure legal protection for all users of online loan applications and the public. "OJK has and continues to make efforts to strengthen the Information Technology-Based Joint Funding Service industry or known as fintech P2P lending as well as consumer and public protection by issuing various LPBBTI provisions and roadmaps 2023-2028," said Head of the Literacy Department, Financial Inclusion and Communications OJK Aman Santosa quoting Antara.

These efforts aim to increase the effectiveness and efficiency of supervision, encourage the industry to develop in a healthy, integrity and contributive manner, and strengthen consumer protection. OJK is preparing a draft regulation on the fintech peer to peer (P2P) lending industry as a refinement of previous regulations which include strengthening institutions, risk management, consumer governance and protection, as well as strengthening support for the productive sector and MSMEs.

In addition, OJK has issued a regulation regarding fintech P2P lending, namely Financial Services Authority Regulation Number 10/POJK.05/2022 concerning Information Technology-Based Joint Funding Services (POJK 10/22) and Financial Services Authority Circular Letter Number 19/SEOJK.06/2023 concerning the Implementation of Information Technology-Based Joint Funding Services (SEOJK 19/2023).

Organizers are required to meet the maximum limit on the benefits of the funding economy in facilitating funding.

The economic benefits imposed by the organizers are the level of returns, including interest/margin/sharing; the cost of the commission/fee platform/ujrah is equivalent to the cost in question; and other costs, in addition to fines for delays, stamp duty, and taxes. OJK has also reminded and asked fintech P2P lending operators and fintech association P2P lending to carry out the necessary steps and risk mitigation so that fintech P2P lending financial products or services are not used as means of economic crime such as online gambling, money laundering, terrorism financing, proliferation financing of weapons of mass destruction, as well as other economic crimes.

OJK asks fintech organizers P2P lending and fintech association P2P lending to load a warning statement to consumers using capital letters that can attract the attention of readers on the main pages that can be directly seen on websites and applications. As an example, a warning as follows: "Be careful, this transaction is at high risk. You can experience losses or money loss. Don't be in debt if you don't have the ability to pay. Consider wisely before transacting." Regarding consumer and public protection, OJK issues POJK Number 22 of 2023 concerning Consumer Protection and Society in the Financial Services Sector. Under these rules, OJK regulates several things such as the obligation to maintain confidentiality and security of data and/or consumer information; a ban on making and using a standard agreement that contains exoneration clauses/exemplification; sanctions on the spread of personal data. Financial service business actors (PUJK) are also required to ensure credit collection or financing to consumers is carried out in accordance with the norms applicable in society and statutory provisions.