Fintech in Indonesia – P2P and Marketplace Lending

In Indonesia, loan agreements in a peer-to-peer lending platform are acknowledged and regulated. Based on Financial Services Authority (OJK) Regulation No. 77/POJK.01/2016 regarding Information Technology-Based Money Lending Services, dated 29 December 2016, there are two agreements in a peer-to-peer lending scheme:

• an agreement between the provider of the peer-to-peer lending service (the provider of the platform) and the lender; and
• an agreement between the lender and the borrower.

The agreement on the provision of peer-to-peer lending between a provider and a lender is made in electronic document format and must contain, at least, the:

• agreement number;
• date of agreement;
• identities of the parties;
• provisions on the rights and obligations of the parties;
• amount of the loan;
• interest rate of the loan;
• amount of commission;
• tenor;
• breakdown of relevant expenses;
• provisions on fines (if any);
• mechanism of dispute settlement; and
• settlement mechanism if the provider is unable to continue its operational activities.

The provider is required to provide the lender with access to information on the appropriation of funds. This information does not include information related to the identity of the borrower. The information will include, at least, the:

• amount of loaned funds to the borrower;
• purpose of the use of the funds by the borrower;
• amount of the loan interest; and
• tenor of the loan.

The lending agreement between the lender and borrower is made in electronic document format and must contain, at least, the:

• agreement number;
• date of agreement;
• identities of the parties;
• provisions on the rights and obligations of the parties;
• amount of the loan;
• interest rate of the loan;
• instalment value;
• tenor;
• object of guarantee (if any);
• breakdown of relevant expenses;
• provisions on fines (if any); and
• mechanism of dispute settlement.

The provider is required to provide the borrower with access to information on the position of the received loan. This information will not include information related to the identity of the lender. The agreements above are made by using electronic signatures in accordance with the prevailing laws and regulations on electronic signatures. If the provider uses a standard agreement (for any agreement between the provider and the users of the platform, be it lenders or borrowers, the standard agreement must not:

• transfer the responsibilities or obligations of the provider to the user; or
• state that the user is subject to new regulations, addendums, supplementary or amendments drawn up unilaterally by the provider within the period during which the user uses the service.

A standard agreement or standard clause is described as a written agreement as set forth unilaterally by the provider and that contains standard clauses regarding content, format, as well as method of production, and is used to make a mass offer of service to users.

 This first appeared in Lexology GTDT Fintech 2021. 

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