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Indonesia’s Online Loan Challenges: What Legal Actions Can Solve the Most Pressing Issues?

Jurnal Pengabdian Hukum Indonesia (Indonesian Journal of Legal Community Engagement) JPHI · Vol. 8 No. 1 (2025) · pp. 275–314

DOI
10.15294/jphi.v8i1.21959
ISSN
2654-8313, 2654-8305
Published
2025-08-23
Publisher
Universitas Negeri Semarang
Language
eng
License
creativecommons.org/licenses/by-nc/4.0

Abstract

The rapid growth of online lending platforms in Indonesia has introduced significant challenges, particularly regarding predatory lending practices, lack of consumer awareness, and insufficient regulatory oversight. These challenges have raised concerns about consumer protection, the exploitation of borrowers, and the need for stronger legal frameworks to ensure fair and transparent lending practices. This paper explores the key legal and regulatory actions necessary to address these pressing issues. It examines the role of Indonesia's Financial Services Authority (OJK) in regulating online lenders and proposes potential improvements in licensing, supervision, and enforcement. The paper also suggests the introduction of clearer lending standards, such as interest rate caps and transparent fee structures, alongside stronger consumer protection laws to prevent harassment and over-indebtedness. Data privacy and security concerns are addressed, with a call for more robust protections around borrower data. Additionally, the paper advocates for financial literacy programs to empower borrowers with the knowledge to make informed decisions. The research contributes to the existing body of knowledge by providing an in-depth analysis of the legal gaps within Indonesia’s online lending market, offering comparative insights from other countries like India and the Philippines, and proposing actionable legal solutions. It also emphasizes the importance of integrating technology into the regulatory process to enhance oversight and consumer protection. Ultimately, this study aims to inform policymakers, regulators, and stakeholders in Indonesia’s fintech industry about the necessary legal reforms to create a more transparent, equitable, and secure online lending environment.

Keywords

Collaboration network of the authors

22 authors · 56 co-authorship links · 11 across different organisations

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • Islamic University of Riau
  • Universitas Muhammadiyah Malang
  • University of Newcastle Australia
  • Padjadjaran University
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Fadhel Arjuna AdindaAffiliation unknown3
Ema RahmawatiAffiliation unknown2
Eman SuparmanAffiliation unknown2
Rosyidi HamzahAffiliation unknown2
Admiral AdmiralAffiliation unknown2
David HardiagoAffiliation unknown2
Nina InayatiUniversitas Muhammadiyah Malang1
Dwi Mawan KarifiantoUniversitas Muhammadiyah Malang1
Bambang SutiyosoAffiliation unknown1
Jose Gama SantosAffiliation unknown1
Ellydar ChaidirAffiliation unknown1
Ardiansyah ArdiansyahAffiliation unknown1
Kim HyeonsooAffiliation unknown1
Rani Fadhila SyafrinaldiAffiliation unknown1
Muhammad Yusuf AlgifariAffiliation unknown1
Deni Jaya SaputraAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/JPHI/oai, first harvested 5 Nov 2026, last seen 8 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en">Indonesia’s Online Loan Challenges: What Legal Actions Can Solve the Most Pressing Issues?</dc:title>
	<dc:creator xml:lang="en">Admiral, Admiral</dc:creator>
	<dc:creator xml:lang="en">Suparto, Suparto</dc:creator>
	<dc:creator xml:lang="en">Kurniasih, Esy</dc:creator>
	<dc:creator xml:lang="en">Afriani, Selvi</dc:creator>
	<dc:creator xml:lang="en">Woodward, John</dc:creator>
	<dc:creator xml:lang="en">Adinda, Fadhel Arjuna</dc:creator>
	<dc:subject xml:lang="en">Online Lending</dc:subject>
	<dc:subject xml:lang="en">Legal Framework</dc:subject>
	<dc:subject xml:lang="en">Consumer Protection</dc:subject>
	<dc:subject xml:lang="en">Regulatory Oversight</dc:subject>
	<dc:subject xml:lang="en">Financial Services Authority (OJK)</dc:subject>
	<dc:description xml:lang="en">The rapid growth of online lending platforms in Indonesia has introduced significant challenges, particularly regarding predatory lending practices, lack of consumer awareness, and insufficient regulatory oversight. These challenges have raised concerns about consumer protection, the exploitation of borrowers, and the need for stronger legal frameworks to ensure fair and transparent lending practices. This paper explores the key legal and regulatory actions necessary to address these pressing issues. It examines the role of Indonesia's Financial Services Authority (OJK) in regulating online lenders and proposes potential improvements in licensing, supervision, and enforcement. The paper also suggests the introduction of clearer lending standards, such as interest rate caps and transparent fee structures, alongside stronger consumer protection laws to prevent harassment and over-indebtedness. Data privacy and security concerns are addressed, with a call for more robust protections around borrower data. Additionally, the paper advocates for financial literacy programs to empower borrowers with the knowledge to make informed decisions. The research contributes to the existing body of knowledge by providing an in-depth analysis of the legal gaps within Indonesia’s online lending market, offering comparative insights from other countries like India and the Philippines, and proposing actionable legal solutions. It also emphasizes the importance of integrating technology into the regulatory process to enhance oversight and consumer protection. Ultimately, this study aims to inform policymakers, regulators, and stakeholders in Indonesia’s fintech industry about the necessary legal reforms to create a more transparent, equitable, and secure online lending environment.</dc:description>
	<dc:publisher xml:lang="en">Universitas Negeri Semarang</dc:publisher>
	<dc:date>2025-08-23</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/journals/JPHI/article/view/21959</dc:identifier>
	<dc:identifier>10.15294/jphi.v8i1.21959</dc:identifier>
	<dc:source xml:lang="en">Jurnal Pengabdian Hukum Indonesia (Indonesian Journal of Legal Community Engagement) JPHI; Vol. 8 No. 1 (2025): (January-June 2025); 275-314</dc:source>
	<dc:source>2654-8313</dc:source>
	<dc:source>2654-8305</dc:source>
	<dc:source>10.15294/jphi.v8i1</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/journals/JPHI/article/view/21959/5872</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2025 Admiral Admiral, Suparto Suparto, Esy Kurniasih, Selvi Afriani, John Woodward, Fadhel Arjuna Adinda (Author)</dc:rights>
	<dc:rights xml:lang="en">https://creativecommons.org/licenses/by-nc/4.0</dc:rights>
</oai_dc:dc>