Strengthening Legal Protection For Consumers Of Peer-To-Peer Lending Fintech Services In Support Of Digital Economic Development

Abstract

The development of peer-to-peer (P2P) lending in the financial technology (fintech) sector has driven increased financial inclusion and accelerated digital economic development in Indonesia. On the other hand, this development has also given rise to various legal issues, such as the misuse of personal data, unethical debt collection practices, an imbalance in the legal positions between operators and consumers, and suboptimal legal protection for service users. This study aims to analyze the effectiveness of legal protection for consumers of peer-to-peer lending fintech services, identify factors influencing the strengthening of legal protection, and formulate a legal protection model based on Pancasila to support digital economic development. This study employs a normative legal research method supported by empirical research, utilizing legislative, conceptual, and case-based approaches. Data were obtained through a literature review and supplemented by empirical data analyzed qualitatively via legal interpretation and comparative analysis. The results show that legal protection for consumers of peer-to-peer lending fintech has not been effectively implemented despite the availability of a relatively comprehensive regulatory framework. This situation is influenced by a gap between legal norms and their implementation, weak regulatory oversight, suboptimal governance of personal data protection, low levels of legal and financial literacy among the public, and a lack of integrated interagency coordination. As a theoretical contribution, this study proposes a Pancasila-Based Legal Protection Model that integrates the principles of legal certainty, justice, humanity, accountability, and collaborative governance as the foundation for strengthening fintech consumer protection. This model is expected to serve as a foundation for refining consumer protection policies while supporting the development of a safe, inclusive, and sustainable digital economy in Indonesia.