Overview of Information Technology Based Lending and Borrowing Services (Peer to Peer Lending)

Information Technology-Based Lending and Borrowing Services, known as Peer to Peer Lending (P2P Lending) is the implementation of financial services through an electronic system to bring lenders to loan recipients in order to enter into a loan agreement with rupiah currency directly (Article 1 point 3 POJK No. 77 / POJK.01 / 2016).

The organizer of P2P Lending is an Indonesian legal entity in the form of a Limited Liability Company or Cooperative that provides, manages and operates P2P Lending services (Article 1 number 6 POJK No. 77/POJK.01/2016). Organizer must submitting registration and licensing to OJK.

The organizer has a duty to provide, manage and operate P2P Lending services from the Lenders to the Borrower whose source of funds comes from the Lender with a maximum total limit of Rp 2,000,000,000 (two billion rupiah).

The organizer agreement with the Lender is set forth in Electronic Documents which at least contains (Article 19 paragraph (2) POJK No. 77/POJK.01/2016:

  1. Agreement number
  2. Date of agreement
  3. Identity of the parties
  4. Provisions regarding the rights and obligations of the parties
  5. Amount of loan
  6. Loan interest rates
  7. The amount of commission
  8. Duration
  9. Details of related costs
  10. Provisions regarding fines (if any)
  11. Dispute resolution mechanism
  12. Settlement mechanism, the Organizer cannot continue its operational activities.

The Lending Agreement with the Loan Recipient is contained in an Electronic Document, such as:

  1. Agreement number
  2. Date of agreement
  3. Identity of the parties
  4. Provisions regarding the rights and obligations of the parties
  5. Amount of loan
  6. Loan interest rates
  7. Installment Value
  8. Duration
  9. Guarantee Object (if any)
  10. Details of related costs
  11. Provisions regarding fines (if any)
  12. Dispute resolution mechanism
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