The Existence of the Financial Services Authority in the Settlement of Non-Performing Loans Based on Peer to Peer Lending

Abstract

The Financial Services Authority (OJK) is an autonomous institution tasked with overseeing and regulating all financial sector activities in Indonesia, including the supervision of banking operations such as lending, sectoral activities, and innovative financial products. In recent years, there has benn a significant surge in the adoption of Financial Technology (FinTech), particularly in the form of Peer-to-Peer (P2P) Lending. OJK, being responsible for organizing and supervising financial sector activities, actively monitors the advancements in P2P Lending to ensure compliance with OJK Regulations No. 77/POJK.01/2016, which pertains to Information Technology-Based Direct Lending Services (LMPUBTI) or Peer-to-Peer Lending. Rhis study aims to elucidate OKJ's role in addressing non-perfoming loans (NPLs) associated with P2P Lending in Indonesia, as well as to outline the sanctions imposed by OJK for violations of financial regulations. The research methodology employed is a normative juridical approach, which involves analyzing existing literature or secondary data using a qualitative perspective.