THE ROLE OF FINANCIAL SERVICES AUTHORITY IN THE CONSUMER PROTECTION AMID THE GROWTH OF FINTECH INDUSTRY IN INDONESIA

Johanes Widijantoro

doi:10.22146/jmh.43129

Abstract

The growth of the financial technology (fintech) industry is a necessity as an effort to make financial services more practical and efficient. On the other hand, consumers of financial services are still low in financial literacy levels, especially in considering various risks that can occur in dealing with the fintech industry. Indonesian Financial Services Authority (OJK) is the body responsible for carrying out the protection of consumers of financial services. This article describes how legal matters in the fintech business, which are actually useful and can encourage financial inclusion, but on the other hand have the potential to harm consumers if they are not properly regulated. Existing related OJK Regulations would be examined and what things should be regulated by the OJK so that consumers of financial services are protected amid the development of fintech, will also be elaborated in this article. This article respectively describes the rationality of consumer protection in the financial services, the dynamics of fintech growth and its problems, and an analysis of the role of OJK in the era of fintech industry.

Highlights

Intisari Pertumbuhan industri teknologi keuangan adalah sebuah keniscayaan sebagai konsekuensi kemajuan teknologi sekaligus upaya untuk menjadikan jasa keuangan lebih praktis dan efisien
Consumers of financial services are still low in financial literacy levels, especially in considering various risks that can occur in dealing with the fintech industry
Existing related Otoritas Jasa Keuangan (OJK) Regulations would be examined and what things should be regulated by the OJK so that consumers of financial services are protected amid the development of fintech, will be elaborated in this article

Summary

Pokok Muatan

OJK, which was established under the Law No 21 year 2011, has been regulating the liability of the Financial Services Providers (FSP) to provide consumer protection. The research question is how OJK Regulation provides consumer protection on one side and delivers regulation to mitigate risk for the companies or related parties mainly in the context of the growth of fintech industry. This article analyzes the importance of consumer protection in the the middle of fintech industries and examines the role of OJK through their related policies. This article respectively describes the rationality of consumer protection in the financial services, the dynamics of fintech growth and its problems, and concludes with an analysis of the role of OJK in the era of fintech industry.

Authority allow to OJK to provide information and

Findings

Then it is reasonable if OJK issued Circular