Authority of Asosiasi Fintech Pendanaan Bersama Indonesia (AFPI) in Determining the Amount of Loan Interest Rates Limit in Peer to Peer Lending (P2P Lending) Business Activities

DOI

10.2991/assehr.k.201209.117How to use a DOI?

Keywords

Fintech Peer to Peer Lending, authority, fixed pricing, loan interest rate limit

Abstract

OJK function as a regulator and supervisor of the Fintech P2P Lending financial sector. OJK appointed AFPI to help OJK organize Fintech P2P lending based on Letter of Appointment Number S-5 / D.05 / IKNB / 2019. AFPI issues the LPMUBTI code of ethics, which regulates the loan interest rate limit. There is an allegation that AFPI does not have the authority and favors of unfair business competition practices for the determination made by AFPI. This assumption is based on, first, the absence of a clear source of authority. Because OJK is attributively an authorized party in setting loan interest rate limits in the Fintech P2P lending financial services sector based on OJK Law. In the laws and regulations governing Fintech P2P lending, there is no provision that allows OJK to grant such authority. In addition, AFPI is not a government agency / official or an internal part of the OJK and this act was not carried out on behalf of the OJK but on behalf of AFPI itself. This is not included in the conditions of authority that can be delegated or mandated. Secondly, the AFPI’s actions have fulfilled the elements referred to Article 5 of the Business Competition Law on Pricing. In addition, AFPI’s act also creates barrier for potential business actors to enter the market. where this is not in accordance with the spirit of the Business Competition Law, namely equality of rights for all business actors and the acceleration of economic development to improve public welfare.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Matthew Gladden
AU  - St. Atalim
PY  - 2020
DA  - 2020/12/12
TI  - Authority of Asosiasi Fintech Pendanaan Bersama Indonesia (AFPI) in Determining the Amount of Loan Interest Rates Limit in Peer to Peer Lending (P2P Lending) Business Activities
BT  - Proceedings of the 2nd Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2020)
PB  - Atlantis Press
SP  - 742
EP  - 747
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.201209.117
DO  - 10.2991/assehr.k.201209.117
ID  - Gladden2020
ER  -