THE ROLE OF FINANCIAL SERVICES AUTHORITY (OJK) IN PROVIDING THE LEGAL PROTECTION FOR ONLINE LOAN RECIPIENTS BASED ON FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 77/POJK.01/2016

Abstract

Online loans, also known as Peer-to-Peer Lending, are financial services that
leverage digital technology to connect borrowers and lenders. The Financial
Services Authority (OJK) has issued regulations governing this service through

OJK Regulation No. 77/POJK.01/2016 concerning Information Technology-
Based Money Borrowing and Lending Services. The objective of this research is

to explore the role of Financial Services Authority (OJK) in providing legal
protection toward online loan recipients and identifying the obstacles faced by
OJK in fulfilling the functions of legal protection. The research method used in
this research is an empirical normative approach utilizing descriptive analysis.
The data is collected using both primary and secondary methods. The primary
method involves interviews, while the secondary method consists of literature
review as well as document or archive studies at the office of OJK in Pekanbaru,
Riau Province. Results show that OJK acts as a regulator and supervisor in

consumer legal protection, establishing written regulations regarding technology-
based money borrowing and lending services, as well as facilitating and assisting

the public/consumers in filing complaints through Consumer Protection Portal
Application (AAPK) of OJK. However, obstacles faced by OJK include access to
information and intimidation of consumers. Therefore, this research emphasizes

the importance of the role of OJK in ensuring a safe environment in technology-
based money borrowing and lending services.