Government Prepares Regulation for Online Loans Implementation

The government is currently preparing the Draft Regulation of the Government (Rancangan Peraturan Pemerintah “RPP”) on the Implementation of Online Loans. Some of the key provisions that will be regulated include loan agreement and limits on personal data that can be accessed by companies that operate online loan (pinjaman daring – “Pindar”) apps.

In accordance with the Supreme Court's decision, the substance that will be regulated will include limits on access to personal data, which is restricted only to the camera, microphone, and location, along with strict prohibitions and sanctions against the dissemination of users' personal data across online loan apps, and limitations on loan administrative fees," said Expert Staff of the Ministry of Finance, who requested anonymity, to Hukumonline.

In addition, the RPP will also regulates limits on loan interest rates in line with the recommended interest rate (moratorium rate). It will also include strict prohibitions and sanctions against debt collection practices involving criminal acts, whether committed by the apps organizer company or third parties, in accordance with Decision of Supreme Court No. 1206 K/PDT/2024 regarding a citizen lawsuit on online loan practices.

“It is still being discussed among ministries/agencies, including the OJK and the P2P lending fintech association,” he concluded.