Draft Regulation of the OJK on P2P Lending Services: Mandatory Paid-Up Capital Levels Increased

In order to reflect the ever-increasing non-performing-loan ratio of tech-based, peer-to-peer lending (“ P2P Lending ”) platforms, [1] the Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) is currently preparing a Draft Regulation on Information Technology Based Joint Funding Services (“ Draft Regulation ”), which is not only being formulated in order to improve access to alternative sources funding but also to provide greater legal certainty and protection for all parties involved in P2P lending. [2]