Regulation of Online Lending Industry Deemed in Need of Strengthening

REPUBLIKA.CO.ID, JAKARTA — The rapid development of online loans (pindar) has drawn attention to industry governance. The need for clearer regulations is deemed essential to maintain a balance between financing access and consumer protection. On the other hand, the fast-moving industry dynamics have not been fully matched by an adequate regulatory framework. The decision by the Business Competition Supervisory Commission (KPPU) to impose fines on 97 pindar companies totalling Rp755 billion serves as one indicator of governance issues in this sector. This step affirms that supervision and industry structuring are still ongoing. For some segments of society, particularly those not reached by banking services, pindar has become an alternative financing option. However, at the same time, consumer risks are also a concern. Deputy Chairman of Commission VI of the Indonesian House of Representatives Adisatrya Suryo Sulisto stated that this situation is inseparable from industry developments that outpace regulations. “Such things often happen due to regulatory gaps. What is aimed for is healthy competition without sacrificing economic efficiency,” Adisatrya said during an online discussion quoted on Wednesday (15/4/2026). He assessed that revisions to Law Number 5 of 1999 are necessary to strengthen legal certainty amid digital economy developments. From an academic perspective, regulations such as interest rate caps are seen to serve a protective function for consumers. “Usually, such rules are made to protect consumers,” said Executive Director of LKPU at the Faculty of Law, University of Indonesia, Ditha Wiradiputra. Meanwhile, Celios Digital Economy Director Nailul Huda warned that overly strict policies could also impact financing access. “If interest rate regulations are removed, it could narrow financial inclusion, especially in rural areas,” Nailul said. Industry players believe that regulatory clarity can help distinguish between legal and illegal services. This is deemed important to provide certainty for users. Looking ahead, several parties assess that policies in the pindar sector need to be designed in a balanced manner. The approach taken is hoped to strengthen consumer protection without eliminating financing access for the public.