Innovation and Regulation: Legal Enablers and Challenges in Indonesia’s Digital Banking Lending Ecosystem
Abstract
This study aims to analyze the impact of the Financial Services Authority (OJK) Regulations No. 13/POJK.02/2018, No. 12/POJK.03/2021, and No. 10/POJK.05/2022 on banking participation in technology-enabled lending, in conjunction with the enactment of Law No. 27/2022 on Personal Data Protection and Law No. 4/2023 on the Development and Strengthening of the Financial Sector. The research employs a normative-juridical approach to examine the evolution and implementation of regulatory sandboxes, digital Know – Your – Customer (e-KYC) procedures, and AI-based credit scoring mechanisms. These elements are assessed in terms of their legal foundations and practical implications for credit accessibility, operational efficiency, and financial inclusion. The findings reveal that while these regulatory advancements have significantly improved access to credit and enhanced the efficiency of digital financial services, several challenges remain. These include a rise in non-performing loans, vulnerabilities in data privacy and cybersecurity, opaque interest rate structures, and compliance gaps in anti-money laundering and counter-terrorism financing (AML/CTF) frameworks. Addressing these issues requires the development of a risk-based, technology - neutral regulatory framework, increased transparency in algorithmic decision-making, and stronger cross-sector collaboration. Such measures are essential to fostering a robust, secure, and inclusive digital lending ecosystem in Indonesia that balances innovation with consumer protection and systemic stability.
Keywords
Full Text:
PDFReferences
Journals:
Abdurrahman, A., Gustomo, A., & Prasetio, E. A. (2024). Impact of dynamic capabilities on digital transformation and innovation to improve banking performance: A TOE framework study. Journal of Open Innovation: Technology, Market, and Complexity, 10, 100215. https://doi.org/10.1016/j.joitmc.2024.100215
Admiral, A., & Pauck, M. A. (2023). Unveiling the dark side of fintech: Challenges and breaches in protecting user data in Indonesia’s online loan service. Lex Scientia Law Review, 7(2), 995–1048. https://journal.unnes.ac.id/sju/index.php/lslr/article/view/72178
Afraz T N, A. ., & R, G. (2024). E-Banking: Opportunities and Challenges from Customer’s Perspective. Qubahan Academic Journal, 4 (1), 351–358. https://doi.org/10.48161/qaj.v4n1a421
Arner, D. W., Barberis, J. N., & Buckley, R. P. (2015). The evolution of fintech: A new post-crisis paradigm? University of Hong Kong Faculty of Law Research Paper No. 2015/047, UNSW Law Research Paper No. 2016-62. https://doi.org/10.2139/ssrn.2676553
Arner, D. W., Barberis, J., & Buckley, R. P. (2017). FinTech, RegTech, and the reconceptualization of financial regulation. Northwestern Journal of International Law & Business, 37(3), 371–413.
Barton, C., & MacDonald, J. (2018). Wealth management in an era of robots, regulation, and new money. McKinsey & Company. https://www.mckinsey.com/industries/financial-services/our-insights/wealth%20management-in-an-era-of-robots-regulation-and-new-money
Brown, E., & Piroska, D. (2021). Governing Fintech and Fintech as Governance: The Regulatory Sandbox, Riskwashing, and Disruptive Social Classification. New Political Economy, 27(1), 19. https://doi.org/10.1080/13563467.2021.1910645
Claessens, S., Frost, J., Turner, G., & Zhu, F. (2018). FinTech credit markets around the world: Size, drivers and policy issues. BIS Quarterly Review, September 2018.
Cuadros-Solas, P. J., Cubillas, E., Salvador, C., & Suárez, N. (2024). Digital disruptors at the gate: Does FinTech lending affect bank market power and stability? Journal of International Financial Markets, Institutions and Money, 92, 101964. https://doi.org/10.1016/j.intfin.2024.101964
Dona Budi Kharisma, (2020), "Urgency of financial technology (Fintech) laws in Indonesia", International Journal of Law and Management, Vol. 63 No. 3, pp. 320-331. https://doi.org/10.1108/IJLMA-08-2020-0233
Goo, J. J., & Heo, J. Y. (2020). The impact of the regulatory sandbox on the fintech industry, with a discussion on the relation between regulatory sandboxes and open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 6(2), 43. https://doi.org/10.3390/JOITMC6020043
Hesekova Bojmirova, S. (2022). FinTech and regulatory sandbox – new challenges for the financial market: The case of the Slovak Republic. Juridical Tribune – Review of Comparative and International Law, 12(3), 399–411.
Miglionico, A. (2022). Regulating innovation through digital platforms: The sandbox tool. European Company and Financial Law Review, 19(5), 828–853. https://doi.org/10.1515/ecfr-2022-0029
Muryanto, Y. T., Kharisma, D. B., & Nugraheni, A. S. C. (2021). Prospects and challenges of Islamic fintech in Indonesia: a legal viewpoint. International Journal of Law and Management, 64(2), 239-252. https://doi.org/10.1108/IJLMA-07-2021-0162
Pakpahan, M. E., Zulkifli, S., & Sunarto, A. (2022). Perlindungan hukum pemberian kredit secara digitalisasi kepada debitur masa perkembangan financial technology (fintech). Jurnal Rectum: Tinjauan Yuridis Penanganan Tindak Pidana, 5(1), 120–137. https://doi.org/10.46930/jurnalrectum.v5i1.2561
Philippon, T. (2019). The FinTech opportunity (NBER Working Paper No. 22476). National Bureau of Economic Research.
Putri, C. R. (2019). Tanggung gugat penyelenggara peer to peer lending jika penerima pinjaman melakukan wanprestasi. Jurist Diction, 1(2), 460–475. https://doi.org/10.20473/jd.v1i2.11002
Sitorus, H. A. M. (2023). Perlindungan hukum terhadap nasabah atas fraud pada transaksi bank digital. Jurnal Ilmu Sosial dan Pendidikan (JISIP), 7(1), 554–569. https://doi.org/10.58258/jisip.v7i1.4428
Tarigan, H. A. A. B., & Paulus, D. H. (2019). Perlindungan hukum terhadap nasabah atas penyelenggaraan layanan perbankan digital. Jurnal Pembangunan Hukum Indonesia, 1(3), 294–307. https://doi.org/10.14710/jphi.v1i3.294-307
Vaidya, S., & Niroula, B. (2024). The impact of digitalization on customer satisfaction in Nepalese commercial banks. Jurnal Studi Manajemen dan Bisnis, 11(2), 1–10. https://doi.org/10.21107/jsmb.v11i2.28612
Waliszewski, K., Solarz, M., & Kubiczek, J. (2024). Factors influencing the use of Buy Now Pay Later (BNPL) payments. Comparative Economic Research, 18(4), 444–457. https://doi.org/10.5709/ce.1897-9254.548
Wirani, Y., Randi, R., Romadhon, M. S., & Suhendi, S. (2022). The influence of familiarity and personal innovativeness on the acceptance of fintech lending services: A perspective from Indonesian borrowers. Register: Jurnal Ilmiah Teknologi Sistem Informasi, 8(1), 81–93. https://doi.org/10.26594/register.v8i1.2327
Zetzsche, D. A., Buckley, R. P., Arner, D. W., & Barberis, J. N. (2017). From FinTech to TechFin: The regulatory challenges of data driven finance. New York University Journal of Law and Business, 14 (1), 393–446.
Books:
Hakim, L., & Hapsari, R. A. (2022). Financial technology law. Penerbit Adab.
Tandelilin, E. (2017). In Pasar modal manajemen portofolio & investasi. Kanisius.
Regulations:
Republic of Indonesia. (2022). Law No. 27 of 2022 concerning Personal Data Protection. Jakarta: State Secretariat.
Republic of Indonesia. (2023). Law No. 4 of 2023 concerning Strengthening the Financial Sector and Financial System Stability. Jakarta: State Secretariat.
Bank Indonesia (2016). Bank Indonesia Regulation No. 18/40/PBI/2016 concerning the Implementation of Payment Transaction Processing. Jakarta: Bank Indonesia.
Financial Services Authority (OJK). (2016). POJK No. 77/POJK.01/2016 concerning Information Technology-Based Lending Services. Jakarta: OJK.
Financial Services Authority (OJK). (2018). POJK No. 13/POJK.02/2018 concerning Digital Financial Innovation (IKD). Jakarta: OJK.
Financial Services Authority (OJK). (2019). POJK No. 23/POJK.01/2019 concerning amendments to Financial Services Authority Regulation No. 12/POJK.01/2017 concerning the implementation of anti-money laundering and counter-terrorism financing programs in the financial services sector. Jakarta: OJK.
Financial Services Authority (OJK). (2021). POJK No. 12/POJK.03/2021 concerning commercial banks. Jakarta: OJK.
Financial Services Authority (OJK). (2022). POJK No. 10/POJK.05/2022 concerning information technology-based financing services (LPBBTI). Jakarta: OJK.
Financial Services Authority (OJK). (n.d.). Fintech lending statistics. https://ojk.go.id/id/kanal/iknb/data-dan-statistik/fintech/
DOI: https://dx.doi.org/10.30659/akta.v12i4.47190
Refbacks
- There are currently no refbacks.
Copyright (c) 2025 JURNAL AKTA
License URL: https://creativecommons.org/licenses/by-nc-nd/4.0
Jurnal Akta has been indexed by:
Editorial Office: Jurnal Akta Room 2nd Floor Imam As Syafei Building Faculty of Law Universitas Islam Sultan Agung. Jln. Kaligawe KM. 4, Semarang City, Central Java, Indonesia. Phone +62 24 6583584 Fax +62 24 6582455
Email: jurnalakta@unissula.ac.id