Cultural and Legal Dimensions of Fintech Lending in Indonesia: Reformulating Law through Comparative Perspectives from the US, UK, and China

Abstract

Fintech lending, a digital financial innovation, has transformed the legal ties between lenders and borrowers. The fintech loan legislation in Indonesia, as stipulated by OJK Regulation No. 40 of 2024 and supplementary rules, has inadequately addressed contemporary legal concerns like as personal data privacy, algorithmic fairness, and technology-driven oversight. This paper analyses Indonesia's fintech loan regulations in comparison to those of the US, UK, and China to enhance them. The analysis indicates that Indonesia's legislation contains substantial deficiencies. A definitive structure for segregating lender money, evaluating public loan risk, or integrating personal data protection regulations into digital service systems is absent. This report suggests three clusters of RegTech reforms: openness and consumer protection, technological governance and supervision, and data protection and algorithmic fairness. Each consortium advocates legal theories and international practices that utilise technology for regulation and compliance. Indonesia aims to establish an inclusive, reliable, and civilised digital financial sector through the implementation of fintech lending rules. The nation's competitiveness in the global financial arena ought to enhance. This study advocates for the expansion of digital legislation and paves the way for further research on algorithmic oversight in the financial sector.