Harmonising Digital and Legal Frameworks to Improve Online Lending Practices Against Prejudicial Acts in Indonesia

DOI

10.2991/978-2-38476-366-5_60How to use a DOI?

Keywords

Consumer Protection; Digital Literacy; Harmonization; Online Loan Agreement; Technology; Regulation

Abstract

In the growing digital era, technology penetration is seen as a factor that can improve service efficiency, including in the online lending sector. Based on data from the Indonesian Internet Service Providers Association (APJII), the number of internet users in Indonesia in 2023 was recorded at 78.19%, or around 215.6 million people from a total population of 275.8 million. However, this phenomenon has two sides, it can facilitate or hinder the development of Indonesia's digital economy. A report by the Financial Services Authority (OJK) recorded more than 17,000 cases related to financial technology services during the period January to July 2024, with consumer complaints related to misuse of personal data, unethical lending practices, and aggressive debt collection. This shows the importance of structuring technology penetration to be more structured and harmonious. In contrast to previous studies that focus on legal and legislative aspects, this study complements it with empirical, comparative data, as well as socio-economic impact analysis. Using justice and utilitarian theories as a basis, this study aims to identify gaps in the Consumer Protection Law related to prejudicial practices, as well as propose a fair and transparent online loan agreement model through the application of blockchain technology. In addition, this research also formulates strategies to improve digital literacy as a preventive measure against prejudicial actions. The methodology used is descriptive qualitative with normative-empirical, comparative, and conceptual approaches, with analysis of Law Number 8 Year 1999 on Consumer Protection as primary legal material, with the support of secondary literature in the form of books, journals, and related articles.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yuyut Prayuti
AU  - Happy Yulia Anggraeni
AU  - Yeni Nuraeni
AU  - L.Alfies Sihombing
AU  - Erna Listiawati
PY  - 2025
DA  - 2025/02/28
TI  - Harmonising Digital and Legal Frameworks to Improve Online Lending Practices Against Prejudicial Acts in Indonesia
BT  - Proceedings of the 1st International Conference on Social Environment Diversity (ICOSEND 2024)
PB  - Atlantis Press
SP  - 623
EP  - 633
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-366-5_60
DO  - 10.2991/978-2-38476-366-5_60
ID  - Prayuti2025
ER  -