The policy of imposing upper limits on economic benefits within the\npeer-to-peer (P2P) lending industry, implemented through its\nassociation, was born as a response to requests from the Financial\nServices Authority (OJK). This was intended to establish interest rate\nceilings, aiming to protect the public from the risks of high-interest\npractices or predatory lending.<\/p>\n
The Business Competition Supervisory Commission (KPPU) considers such\nprice-setting regulations to be price-fixing agreements that contravene\ncompetition law. In its ruling, the KPPU concluded that 97 online\nlending providers were proven to have violated Article 5 of Law Number 5\nof 1999, with varying fines imposed on each company.<\/p>\n
Responding to this, Hari Prasetyo, an academic from the Faculty of\nLaw, University of Indonesia (FH UI), expressed hope that in the\nupcoming verdict hearing, the panel of judges would decide the case by\nexamining who benefits most from the interest rate restrictions.<\/p>\n
\u201cThe judges must consider, in a condition where there are no interest\nrate limits, which option is more beneficial for consumers or the\npublic,\u201d Hari stated in his remarks on Thursday (1\/10\/2026).<\/p>\n
\u201cWhether the association limits the interest rates, or whether rates\ncan go as high as possible because there are no limits? The interests of\nconsumers are crucial to examine in the context of this case,\u201d he\nadded.<\/p>\n
Hari, who teaches State Administrative Law at FH UI, explained that\nthe actions of an association regulating an industry cannot\nautomatically be categorised as a cartel. Under certain conditions, such\nas when the state has not yet regulated or established specific\nstandards, he argued that the industry cannot be blamed for implementing\ncertain limits or standards.<\/p>\n
When the state adopts industry standards into more binding\nregulations, Hari referred to this as a common process known as\n\u2018norming\u2019.<\/p>\n
Norming is a government action intended to reduce negative\nexternalities from an industry by creating rules based on values or\npractices already existing within that industry. The objective is to\nensure that the industry\u2019s negative externalities do not worsen in the\nfuture.<\/p>\n
\u201cIn this case, the OJK is attempting to ensure that the externalities\nof online loan interest rates do not have an increasingly negative\nimpact on the public. The OJK also requested that the association\nestablish loan interest rate limits,\u201d said Hari.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/consumer-protection-must-be-a-priority-in-kppu-pindar-dispute-resolution-1790952846", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }