Digital Lending: Risks, Regulation and Remedies

Digital lending has transformed consumer and business finance by offering rapid, collateral-free access to capital via mobile applications and web platforms. In Indonesia, this industry is officially regulated by the Financial Services Authority (OJK) as Information Technology-Based Joint Funding Services (Layanan Pendanaan Bersama Berbasis Teknologi Informasi or LPBBTI), commonly referred to globally as Peer-to-Peer (P2P) Lending. Despite its convenience—characterized by instant disbursements, minimal documentation (KTP and smartphone), and uncollateralized structures—the market is fraught with predatory practices. Unlicensed operators exploit regulatory gaps, charging exorbitant hidden fees and using aggressive, unethical collection tactics. This program equips participants with a practical framework to distinguish legal platforms from illegal operations, navigate the regulatory environment, and respond effectively to predatory lending traps.

Upon completing this workshop, participants will be able to:

• Define Digital Lending Operations: Master the mechanics, regulatory framework (LPBBTI/OJK), and key features of legitimate P2P lending platforms.
• Identify Predatory & Unlicensed Entities: Contrast licensed providers against illegal platforms by evaluating interest rate transparency, data access permissions, and collection ethics.
• Deploy Legal & Practical Remedies: Implement immediate mitigation strategies and legal recourse protocols if targeted or trapped by illegal lenders.