Vol. 1 No. 1 (2025): Contemporary Challenges in Private and Islamic Law
Articles

Consumer Protection in Default Practices of Online Lending Platforms: A Legal and Regulatory Analysis in Indonesia

PDF
  • Ulfi Zulfikar Faridhun
Ulfi Zulfikar Faridhun
UIN Saifuddin Zuhri Purwokerto

Published 2025-08-23

Keywords

  • Fintech Lending,
  • Consumer Protection,
  • Debt Collection,
  • Regulatory Oversight

Copyright (c) 2025 Ulfi Zulfikar Faridhun (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The rapid growth of peer-to-peer (P2P) lending platforms in Indonesia has enabled greater financial inclusion but also introduced new risks to consumer protection—particularly in the post-default phase. This study examines the legal challenges faced by borrowers who experience abusive debt collection practices by licensed fintech lenders and their third-party agents. Through a normative-empirical legal approach, the research analyzes relevant regulations issued by the Otoritas Jasa Keuangan (OJK), public complaint data, and academic literature on digital consumer rights. The findings indicate that existing regulatory instruments, such as POJK No. 10/2022 and POJK No. 6/2022, are limited in their ability to deter unethical behavior during loan collection. Borrowers frequently report harassment, intimidation, and misuse of personal data—violations that are rarely followed by effective legal remedies. The study identifies key legal gaps, such as the lack of enforceable sanctions against third-party collectors and the absence of post-default legal safeguards. It concludes with policy recommendations directed at OJK, fintech industry associations, and legislative bodies, advocating for a borrower-centered regulatory framework that prioritizes dignity, mental health, and access to justice.

PDF

References

  1. Adrianto, D., & Widodo, T. (2020). The Legal Protection of Fintech Borrowers in Indonesia. Jurnal Hukum Dan Peradilan, 9(1), 15–29.
  2. Alisjahbana, A. S., Setiawan, M., Effendi, N., Santoso, T., & Hadibrata, B. (2020). The adoption of digital technology and labor demand in the Indonesian banking sector. International Journal of Social Economics, 47(9), 1109–1122. https://doi.org/10.1108/IJSE-05-2019-0292/FULL/HTML
  3. Awrey, D. (2013). Toward a Supply-Side Theory of Financial Innovation. Journal of Comparative Economics, 41(2), 401–419.
  4. Black, J. (2008). Constructing and Contesting Legitimacy and Accountability in Polycentric Regulatory Regimes. Regulation & Governance, 2(2), 137–164.
  5. Brailovskaya, V. (2023). Digital Labor Gig Economy From the Worker’s Perspective: A Literature. A Literature. https://www.idinsight.org/wp-content/uploads/2024/01/PUBLIC-Digital-Labor-Gig-Economy-From-the-Workers-Perspective_-A-Literature-Review-.pdf
  6. European Commission. (2021). Proposal for a Directive on Consumer Credit. In Brussels.
  7. Farida, Ike. (2020). Recent Development of Legal Framework of Labor Law in Indonesia. The 4th JILPT Tokyo Comparative Labor Policy Seminar. https://www.jil.go.jp/english/jli/documents/2021/032-09.pdf
  8. Federal Trade Commission (FTC). (2022). Annual Report 2022: Fair Debt Collection Practices Act. Retrieved from Https://Www.Ftc.Gov.
  9. Fitriani, N., & Siregar, R. (2021). Online Lending and the Rise of Consumer Distress. Journal of Digital Law and Society, 5(2), 89–104.
  10. Hardiningsih, P., Sulindawati, S., & Prasetyo, E. (2021). Consumer Vulnerability and Ethical Fintech: Evidence from Indonesia. Journal of Business Ethics and Technology, 9(3), 113–126.
  11. Hasanah, M., & Zulfikar, R. (2023). Debt Stigma and Legal Disempowerment in Indonesia’s Fintech Landscape. Southeast Asian Journal of Law and Society, 7(1), 81–97.
  12. Hassan, R., & Nasution, M. (2022). Regulating Fintech Debt Collection in Malaysia: A Policy Review. Asian Journal of Law and Society, 7(1), 71–85.
  13. Howells, G. G., & Weatherill, S. (2017). Consumer Protection Law. Routledge.
  14. Johan, Suwinto. (2020). Financial Technology Company’s Debt Collection Method: A Legal Aspect. Unnes Law Journal, 8(1), 19–20. https://doi.org/10.15294/ulj.v7i1.52173
  15. Latif, A., Tiara, T., Hafiah, H., & Anwar, A. M. G. (2023). Legal Protection for Online Loan Borrowers. Indonesian Journal of Law and Islamic Law (IJLIL), 5(1), 1–15. https://doi.org/10.35719/IJLIL.V5I1.279
  16. Lee, Doreen. (2021). Indonesia’s Economic Futures: Who Will Pay? Current History, 120(827), 214–220. https://online.ucpress.edu/currenthistory/article-abstract/120/827/214/118339
  17. Lutfi, L. , R. A. A., & Ningsih, S. (2022a). Legal Review on Digital Contract Fairness in Fintech. Indonesian Law Journal, 14(2), 65–82.
  18. Lutfi, L. , R. A. A., & Ningsih, S. (2022b). Legal Review on Digital Contract Fairness in Fintech. Indonesian Law Journal, 14(2), 65–82.
  19. Marzuki, P. M., & Dewi, S. R. (2020). Consumer Protection in Fintech Lending Practices: Challenges and Opportunities. Indonesian Journal of Consumer Law, 4(1), 17–29.
  20. Moorena, L., Rabb, M., Rusdinar, A., Schaner, S., Tangoren, C., & Theys, N. (2020). Towards inclusive digital finance in indonesia. Inclusive Financial Innovation Initiative (IFII) White Paper. https://www.povertyactionlab.org/sites/default/files/review-paper/ifii-whitepaper.pdf
  21. Murwenie, I., Erik Kartiko, & Alam Avrianto. (2025). Digital Empowerment of MSMEs: Implications of Digital Loans on Business Sustainability Through Selective Credit Schemes. Jurnal Manajemen Dan Kewirausahaan, 13(1). https://doi.org/10.26905/jmdk.v13i1.15691
  22. OJK. (2022). Peraturan OJK Nomor 10 Tahun 2022 tentang Layanan Pendanaan Bersama Berbasis Teknologi Informasi.
  23. OJK. (2023). Statistik Fintech Lending. Retrieved from Https://Www.Ojk.Go.Id.
  24. Prabowo, D. A. , & Tjandraningsih, I. (2021). Digital Labor and Debt Collection in Indonesia. Asian Labour Review, 3(2), 55–70.
  25. Putri, R. I., & Indrajit, R. E. (2023). Smart Contracts and Consumer Protection: A Critical View. Jurnal Teknologi Dan Hukum, 4(1), 22–39.
  26. Rahman, M. T., & Anggoro, D. W. (2022). Post-Contractual Risks in Peer-to-Peer Lending: Legal Gaps and Policy Implications. Journal of Law and Digital Economy. Journal of Law and Digital Economy, 6(2), 145–162.
  27. Sandbukt, S. (2021). Top-Up with Driver: Digital Money, Transactional Aspirations, and Peerhood in Yogyakarta, Indonesia. IT-Universitetet i København. https://pure.itu.dk/ws/files/86283438/PhD_Thesis_final_version_Sunniva_Sandbukt.pdf
  28. Santoso, B., & Widodo, A. (2022). Access to Justice in Digital Lending: A Socio-Legal Study of Low-Income Borrowers in Indonesia. Journal of Legal Reform, 6(2), 104–120.
  29. Setiadi, R., & Paramita, D. (2021). Regulatory Governance in Fintech: OJK’s Role in Consumer Protection. Journal of Indonesian Financial Law, 3(1), 44–60.
  30. Tayibnapis, A. Z., Lucia Endang Wuryaningsih, & Radita Gora. (2018). The development of digital economy in Indonesia. IJMBS International Journal of Management and Business Studies, 8(3), 14–18. http://repository.ubaya.ac.id/34244/
  31. Wayan, I., Sucaya Aryana, P., Putu, N., Setyaningsih, A., Chandra, P., & Kayuan, K. (2023). Digital Persecution in Financial Technology-based Online Loan Collection. In Changing of Law: Business Law, Local Wisdom and Tourism Industry”(ICCLB 2023) (Vol. 804). Atlantis Press. https://doi.org/10.2991/978-2-38476-180-7_83
  32. Wibowo, D. S., & Arifianto, B. (2023). Personal Data Breaches in Indonesian P2P Lending: Legal Analysis and Institutional Response. Indonesian Journal of Information Law, 5(1), 1–18.
  33. Wilhelmsson, T. (2019). Standard Contract Terms and Consumer Protection. Hart Publishing.
  34. Wulandari, F., & Azzahra, R. (2022). Effectiveness of Consumer Complaint Handling in Financial Services. Indonesian Journal of Regulatory Studies, 2(2), 39–50.
  35. YLKI. (2022). Laporan Pengaduan Konsumen Fintech 2022.
  36. Yuliana, D., & Nurhidayah, M. (2021). Legal Aspects of Fintech Lending and Data Protection. Indonesian Journal of Legal Studies, 6(1), 41–57.
  37. Yuniarti, S., & Rasyid, A. (2020). Consumer Protection in Lending Fintech Transaction in Indonesia: Opportunities and Challenges. Journal of Physics: Conference Series, 1477(5), 17–29. https://doi.org/10.1088/1742-6596/1477/5/052016
  38. Zetzsche, D. A., Buckley, R. P., Arner, D. W., & Barberis, J. N. (2020). Regulating Libra: The Transformative Potential of Facebook’s Cryptocurrency and Possible Regulatory Responses. University of New South Wales Law Journal, 43(1), 112–145.