Peer-to-peer lending, abbreviated as P2P Lending, is a practice of lending money to individuals or businesses through an electronic system that bridges lenders with borrowers. P2P Lending combines internet technology and financial services aimed at improving and automating the delivery of financial services. P2P Lending literally changes the business model from conventional to modern. Provider of P2P Lending services (“Provider”) can be in the form of a limited liability company or a cooperative. P2P Lending is under the supervision of the Financial Services Authority (“OJK”). Meanwhile, Fintech, which is engaged in payment system activities (e.g. e-money, e-wallet, mobile payments), is under the supervision of Bank Indonesia.
Practicing P2P Lending Activities as Lenders
There are several aspects that need to be considered prior to practicing P2P Lending activities as lenders i.e 1). Type of legal entity along with the minimum paid-up capitals; 2) Foreign ownership limitations; 3) Maximum value of loans to be provided by lenders; 4). Documents required to get the necessary licenses; and 5). Obligatory and compliance aspects.
ADCO Law’s lawyers, Dendi Adisuryo (Partner) and Andi Kristian (Senior Associate) have prepared a comprehensive article on this matter highlighting the important points.
The complete article can be downloaded here ←
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This publication has been prepared by Aditya Yudhistira for general informational purposes only to provide clients with information on recent legal developments and is not intended as legal advice or opinion.