HARMONISING DIGITAL AND LEGAL FRAMEWORKS TO IMPROVE ONLINE LENDING PRACTICES AGAINST PREJUDICIAL ACTS IN INDONESIA Yuyut Prayuti(1), Happy Yulia Anggraeni(2), Yeni Nuraeni(3), L. Alfies Sihombing(4), Erna Listiawati(5)
(1)(2) Fakultas Hukum, Universitas Islam Nusantara (3)(4) Fakultas Hukum, Universitas Pakuan (5)Sinergi Foundation
Abstract
The pervasive integration of digital technology is perceived as a means to enhance efficiency in various services, including online lending platforms. According to data from the Indonesian Internet Service Provider Association (Asosiasi Penyelenggara Jasa Internet Indonesia, APJII), internet users in Indonesia have reached 78.19% in 2023, equating to 215,626,156 individuals out of a total population of 275,773,901. This digital penetration presents both challenges and opportunities for the growth of the digital economy in Indonesia. The Financial Services Authority (Otoritas Jasa Keuangan, OJK) reported over 17,000 cases between January and July 2024, involving consumer complaints against financial technology services such as data misuse, unethical lending practices, and aggressive debt collection. This underscores the urgent need to harmonize technology penetration. Previous studies primarily focused on legal and legislative aspects- this study complements them by incorporating empirical data, comparative analyses, and socio-economic impacts. Grounded in theories of justice and utilitarianism, this research aims to critique and identify potential gaps in the Consumer Protection Law from prejudicial practices to develop a model for online loan agreements that is significant (fair and transparent) through the unexplored realm of blockchain technology, alongside formulating strategies for improving accessibility and understanding of digital literacy as a preventive measure against prejudicial actions. The methodology employed is qualitative descriptive with a normative-empirical, comparative, and conceptual approach. The primary legal material analyzed is Law Number 8 of 1999 on Consumer Protection, supported by secondary literature including books, journals, and related articles.
