Peer-to-Peer (P2P) funding is a form of financial technology and alternative funding that is currently on the rise and believed will continue to grow in the future. Despite its popularity, there is a trending decline of P2P organizers’ success rate based on OJK’s statistics from May 2022 - May 2023, meaning that there is an increase of payment failures or default amongst the users.
The document provides an overview of the Insolvency and Bankruptcy Code of India. Some key points:
- The Code aims to consolidate bankruptcy laws and establish time-bound insolvency resolution processes for companies, individuals, and partnerships.
- It allows for insolvency resolution and liquidation procedures for corporate debtors, individuals, and partnership firms.
- The Code defines financial creditors, operational creditors, and debt. It provides procedures for financial and operational creditors to initiate corporate insolvency resolution processes.
- The Code establishes the Insolvency and Bankruptcy Board of India as the regulator overseeing insolvency professionals and information utilities.
Asia Counsel Insights provide readers an update on legal and business developments in Vietnam.
Asia Counsel Vietnam would like to wish all clients, friends and readers a happy lunar new year. We wish the year of the Tiger 2022 will bring strength, vitality and success.
In this edition we summarise the legal changes to the operations of real estate businesses, penalties imposed for breaches of investment law and proposed amendments to the consumer law.
Towards National Financial Inclusion and Credit Growth: Regulatory Framework ...AHRP Law Firm
In order to enhance national financial inclusion and stimulate credit growth, the Financial Services Authority (OJK) established the Credit Bureau Agency (Lembaga Pengelola Informasi Pengkreditan, or "LPIP") by issuing OJK Reg. 5/2022. LPIP aims to produce diverse, comprehensive, and value-added credit information through the management and development of credit information. Additionally, OJK Reg. 5/2022 is designed to facilitate widespread access to credit, promote responsible lending practices, and ensure financial transparency. To achieve these goals, LPIP utilizes rigorous risk management and efficient data exchange mechanisms. As a result, individuals and businesses gain access to previous inaccessible financial services. This strategic approach not only fosters economic empowerment but also strengthens the entire financial ecosystem. Find out more in our Legal Brief publication for additional insights on this topic.
This document summarizes a presentation given in Baghdad on using sovereign credit to finance power sector infrastructure projects in Iraq. It discusses how sovereign guarantees could help satisfy lenders, provide access to international markets, and enhance financing terms for Iraq. While Iraq's electricity sector currently does not meet standards for traditional financing, a sovereign guarantee could act as credit enhancement until reforms are made. The presentation outlines the process of establishing sovereign credit under Iraqi law and proposes a path forward for its use on power projects.
The document provides an overview of the initiation of corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC) in India. It explains that CIRP can be initiated by a financial creditor, operational creditor or the corporate debtor itself by filing an application to the adjudicating authority if there is a default. It outlines the eligibility criteria, process and documents required for an application filed by a financial creditor, operational creditor or corporate applicant. The CIRP must be completed within 180 days but can be extended if approved by 75% of the CoC voting shares.
SEBI(LODR)Regulations - Obligations on listing of specified securities - Part IIDVSResearchFoundatio
Key Takeaways:
Related party transactions
Obligations of directors including independent directors, employees including KMPs
Corporate Governance requirements
SEBI(LODR)Regulations - Obligations on listing of specified securities - Part IIDVSResearchFoundatio
Key Takeaways:
Related party transactions
Obligations of directors including independent directors, employees including KMPs
Corporate Governance requirements
The document provides an overview of the Insolvency and Bankruptcy Code of India. Some key points:
- The Code aims to consolidate bankruptcy laws and establish time-bound insolvency resolution processes for companies, individuals, and partnerships.
- It allows for insolvency resolution and liquidation procedures for corporate debtors, individuals, and partnership firms.
- The Code defines financial creditors, operational creditors, and debt. It provides procedures for financial and operational creditors to initiate corporate insolvency resolution processes.
- The Code establishes the Insolvency and Bankruptcy Board of India as the regulator overseeing insolvency professionals and information utilities.
Asia Counsel Insights provide readers an update on legal and business developments in Vietnam.
Asia Counsel Vietnam would like to wish all clients, friends and readers a happy lunar new year. We wish the year of the Tiger 2022 will bring strength, vitality and success.
In this edition we summarise the legal changes to the operations of real estate businesses, penalties imposed for breaches of investment law and proposed amendments to the consumer law.
Towards National Financial Inclusion and Credit Growth: Regulatory Framework ...AHRP Law Firm
In order to enhance national financial inclusion and stimulate credit growth, the Financial Services Authority (OJK) established the Credit Bureau Agency (Lembaga Pengelola Informasi Pengkreditan, or "LPIP") by issuing OJK Reg. 5/2022. LPIP aims to produce diverse, comprehensive, and value-added credit information through the management and development of credit information. Additionally, OJK Reg. 5/2022 is designed to facilitate widespread access to credit, promote responsible lending practices, and ensure financial transparency. To achieve these goals, LPIP utilizes rigorous risk management and efficient data exchange mechanisms. As a result, individuals and businesses gain access to previous inaccessible financial services. This strategic approach not only fosters economic empowerment but also strengthens the entire financial ecosystem. Find out more in our Legal Brief publication for additional insights on this topic.
This document summarizes a presentation given in Baghdad on using sovereign credit to finance power sector infrastructure projects in Iraq. It discusses how sovereign guarantees could help satisfy lenders, provide access to international markets, and enhance financing terms for Iraq. While Iraq's electricity sector currently does not meet standards for traditional financing, a sovereign guarantee could act as credit enhancement until reforms are made. The presentation outlines the process of establishing sovereign credit under Iraqi law and proposes a path forward for its use on power projects.
The document provides an overview of the initiation of corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC) in India. It explains that CIRP can be initiated by a financial creditor, operational creditor or the corporate debtor itself by filing an application to the adjudicating authority if there is a default. It outlines the eligibility criteria, process and documents required for an application filed by a financial creditor, operational creditor or corporate applicant. The CIRP must be completed within 180 days but can be extended if approved by 75% of the CoC voting shares.
SEBI(LODR)Regulations - Obligations on listing of specified securities - Part IIDVSResearchFoundatio
Key Takeaways:
Related party transactions
Obligations of directors including independent directors, employees including KMPs
Corporate Governance requirements
SEBI(LODR)Regulations - Obligations on listing of specified securities - Part IIDVSResearchFoundatio
Key Takeaways:
Related party transactions
Obligations of directors including independent directors, employees including KMPs
Corporate Governance requirements
FALL IN RUPEE - A MAJOR CONCERN FOR THE ECONOMYNeha Sharma
The recent fall of the Indian rupee visà-vis US Dollar and other major currencies have caused serious concern in the business, profession and Indian intellectuals. The fall of Indian rupee indicate serious inherent weakness of the Indian economy and in spite of some arrests of the inflationary tendency the overall outlook is very weak. Some major indicators include:
This document outlines regulatory relief measures provided by the Cooperative Development Authority to cooperatives with credit operations in response to the COVID-19 pandemic. It allows cooperatives to exclude past due loans from ECQ/MECQ periods from their allowance for probable loan losses computation. It also allows staggered booking of loan loss provisions over 3 years and use of up to 50% of restricted cash from reserve funds for liquidity issues. Cooperatives must submit required documents and disclosures to avail of these temporary measures.
Corporate Compliance Calendar for July, 2022taxguru5
"CORPORATE Compliance CALENDAR covers Compliance under Income Tax act, 1961, Compliance under Goods & Services Act, 2017, Compliance under Other Statutory Laws"
TaxGuru is a platform that provides Updates On Amendments in Income Tax, Wealth Tax, Company Law, Service Tax, RBI, Custom Duty, Corporate Law , Goods and Service Tax etc.
To know more visit https://taxguru.in/corporate-law/corporate-compliance-calendar.html
- The document is a sample exam paper for the Corporate Laws and Compliance subject containing two sections - a multiple choice question section and long answer question section.
- Section A contains 10 multiple choice questions testing knowledge on topics like types of company directors, Nidhi company rules, corporate governance committees, and provisions of other acts like Banking Regulation Act and Insurance Act.
- Section B contains 5 long answer questions requiring discussion on topics such as conversion of companies, political contributions by companies,
External commercial borrowing (ECB) refers to commercial loans taken by eligible resident entities from non-resident lenders with a minimum maturity of 3 years. ECB can be raised through various modes like bank loans, securitized instruments, and suppliers' credit. There are two routes to raise ECB - automatic route, which allows borrowing up to certain limits, and approval route beyond those limits or for non-eligible borrowers. ECB raised funds for infrastructure projects and helped corporates meet their capital requirements at relatively lower rates.
The document provides information about IDLC Finance Limited, including:
- Limitations the author faced during their internship such as political instability and inability to access some data.
- An overview of IDLC's organizational structure, history, subsidiaries, products and services.
- Financial analysis of IDLC including details of assets, loans, deposits, and key performance metrics.
- Details of IDLC's consumer division and consumer loan products like home loans and car loans.
The document discusses banking and financing regulations and practices in Tanzania. It covers requirements for bank and non-bank lenders, types of security that can be taken over different asset classes, guarantees, enforcement of contracts and security, bankruptcy processes, and trends in cross-border financing. Key points include that banks must be licensed by the Bank of Tanzania, security can be taken through charges, pledges, mortgages and assignments but require registration, and insolvency processes provide for compromise arrangements, administration and winding up but creditors can influence the process.
Corporate Compliance Calendar for July, 2022taxguru5
"CORPORATE Compliance CALENDAR covers Compliance under Income Tax act, 1961, Compliance under Goods & Services Act, 2017, Compliance under Other Statutory Laws"
TaxGuru is a platform that provides Updates On Amendments in Income Tax, Wealth Tax, Company Law, Service Tax, RBI, Custom Duty, Corporate Law , Goods and Service Tax etc.
To know more visit https://taxguru.in/corporate-law/corporate-compliance-calendar.html
The depository is an organization which holds of investors in electronic form at the request of the investors through a depository participant registered. It also provides services related to transactions in securities.
The document discusses several recent judgments related to the Insolvency and Bankruptcy Code (IBC) in India. It summarizes rulings on:
- The liability of resolution applicants for contingent liabilities of corporate debtors.
- Treatment of contingent claims under the IBC.
- Priority of statutory dues owed to state governments and the concept of a "clean state" in resolution plans.
- Rulings establishing that approved resolution plans are binding on central/state governments and extinguish any claims not included in the plan.
Simmons Luxembourg Insights - May 2022LuxMarketing
The May 2022 edition of our Luxembourg newsletter is available now! We invite you to discover the latest and most important updates in the Luxembourg legal landscape! Inside, you will find news and links on asset management, funds, regulatory, banking finance, capital markets, corporate and tax law.
This document is a partnership agreement between Caltech Trading Korea Corp and Zhongnan Railway Holding Group Development (Thailand) Co., Ltd. for an investment of €950 billion. Caltech will provide the funding in tranches for Zhongnan's projects including real estate development in Western and Eastern Europe. The agreement outlines the parties, terms, roles and responsibilities, banking details, and transaction procedures.
This document provides information on setting up a fintech company in Colombia. It discusses the regulatory framework for fintechs, including laws governing specialized electronic payment companies (SEDPES), crowdfunding, investments by traditional financial institutions in fintechs, and low-value payment systems. It also describes Colombia's regulatory sandbox, which allows fintechs to obtain a temporary operating certificate to test innovative financial services under SFC supervision for up to two years. Requirements for incorporation depend on the fintech's activities - fintechs conducting financial activities require SFC authorization while those with different activities follow general incorporation rules.
The document provides updates on legal and business issues in Vietnam, including:
1) Advised on two M&A deals in Vietnam's pharmaceutical and software industries totaling over $45 million.
2) Proposed changes to Vietnam's law on cooperatives including allowing capital contributions to be transferred and introducing "undivided pools" of retained funds.
3) An upcoming decree on personal data protection in Vietnam that will impose more stringent requirements on data processors and cross-border data transfers.
This document is a promissory note and loan agreement between a lender (Missouri Development Finance Board) and borrower for a $25,000 loan at 3% interest to be repaid in quarterly installments. Key details include: the borrower will use the loan for the purposes stated in their application; the borrower provides collateral for the loan in the form of business assets and agrees to various covenants; events of default are outlined such as missing a payment or providing false information; and remedies for default include accelerating the loan and taking possession of collateral.
Guidelines for Modified Scheme for setting up of Compound Semiconductors and ...ssuser668a58
The document provides guidelines for the Modified scheme for setting up Compound Semiconductors / Silicon Photonics / Sensors Fab/ Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP)/ Outsourced Semiconductor Assembly and Test (OSAT) facilities in India. It outlines eligibility requirements including minimum capital expenditure thresholds, defines key terms, and describes the application process and parameters for fiscal support of 50% of eligible capital expenditures that will be provided on a pari-passu basis to approved projects.
The presentation consists:
Comparison of provision under ST and GST, Value of taxable supply, place of supply
Place of Supply _ GST
Taxable supplies
Bullion business vertical
Exempt services and supply
Analysis of Head wise Incomes earned by banks
Service Accounting Code
INPUT TAX CREDIT
List of common expenses & credit availability
How to Correct errors as Revision is not permissible
STOCK TRANSFER OF SERVICES_ ISD VS CROSS CHARGE
Some of the Grey areas
The SARFAESI Act gives banks powers to recover loans from defaulting borrowers. It allows banks to issue a 60-day notice for loan repayment. If unpaid, banks can take possession of secured assets and sell them to recover dues. The Act established Asset Reconstruction Companies regulated by RBI to acquire NPAs from banks. ARCs must be registered with RBI and meet net worth requirements. They can issue security receipts to qualified buyers and investors for acquired assets. The DRT provides an avenue for borrower appeals, which must be filed within 45 days with 50% of claimed dues deposited.
This document is the Moneylenders Act from Singapore that outlines regulations for moneylending businesses. It defines key terms, sets rules for licensing of moneylenders, and establishes regulations around interest rates, record keeping, inspections and enforcement. Specifically, it requires moneylenders to be licensed, limits the interest and fees that can be charged, and gives regulatory authorities powers to audit records and inspect places of business.
Indonesian Manpower Regulation on Severance Pay for Retiring Private Sector E...AHRP Law Firm
Law Number 13 of 2003 on Manpower has been partially revoked and amended several times, with the latest amendment made through Law Number 6 of 2023. Attention is drawn to a specific part of the Manpower Law concerning severance pay. This aspect is undoubtedly one of the most crucial parts regulated by the Manpower Law. It is essential for both employers and employees to abide by the law, fulfill their obligations, and retain their rights regarding this matter.
Regulatory Updates on Mineral and Coal Mining: Understanding the Latest Amend...AHRP Law Firm
In 2021, the Indonesian Government introduced Government Regulation Number 96 of 2021 on the Implementation of Mineral and Coal Mining Business Activities ("GR No. 96/2021"), which aimed to regulate various aspects of mineral and coal mining business activities comprehensively. However, recognizing the need to streamline bureaucracy, enhance legal and investment certainty, the Indonesian Government enacted Government Regulation Number 25 of 2024 on 30 May 2024, amending several provisions of GR No. 96/2021. Find out more about our insights on this topic in our Legal Brief publication.
More Related Content
Similar to Legal Constraints in P2P Payment Failure.pdf
FALL IN RUPEE - A MAJOR CONCERN FOR THE ECONOMYNeha Sharma
The recent fall of the Indian rupee visà-vis US Dollar and other major currencies have caused serious concern in the business, profession and Indian intellectuals. The fall of Indian rupee indicate serious inherent weakness of the Indian economy and in spite of some arrests of the inflationary tendency the overall outlook is very weak. Some major indicators include:
This document outlines regulatory relief measures provided by the Cooperative Development Authority to cooperatives with credit operations in response to the COVID-19 pandemic. It allows cooperatives to exclude past due loans from ECQ/MECQ periods from their allowance for probable loan losses computation. It also allows staggered booking of loan loss provisions over 3 years and use of up to 50% of restricted cash from reserve funds for liquidity issues. Cooperatives must submit required documents and disclosures to avail of these temporary measures.
Corporate Compliance Calendar for July, 2022taxguru5
"CORPORATE Compliance CALENDAR covers Compliance under Income Tax act, 1961, Compliance under Goods & Services Act, 2017, Compliance under Other Statutory Laws"
TaxGuru is a platform that provides Updates On Amendments in Income Tax, Wealth Tax, Company Law, Service Tax, RBI, Custom Duty, Corporate Law , Goods and Service Tax etc.
To know more visit https://taxguru.in/corporate-law/corporate-compliance-calendar.html
- The document is a sample exam paper for the Corporate Laws and Compliance subject containing two sections - a multiple choice question section and long answer question section.
- Section A contains 10 multiple choice questions testing knowledge on topics like types of company directors, Nidhi company rules, corporate governance committees, and provisions of other acts like Banking Regulation Act and Insurance Act.
- Section B contains 5 long answer questions requiring discussion on topics such as conversion of companies, political contributions by companies,
External commercial borrowing (ECB) refers to commercial loans taken by eligible resident entities from non-resident lenders with a minimum maturity of 3 years. ECB can be raised through various modes like bank loans, securitized instruments, and suppliers' credit. There are two routes to raise ECB - automatic route, which allows borrowing up to certain limits, and approval route beyond those limits or for non-eligible borrowers. ECB raised funds for infrastructure projects and helped corporates meet their capital requirements at relatively lower rates.
The document provides information about IDLC Finance Limited, including:
- Limitations the author faced during their internship such as political instability and inability to access some data.
- An overview of IDLC's organizational structure, history, subsidiaries, products and services.
- Financial analysis of IDLC including details of assets, loans, deposits, and key performance metrics.
- Details of IDLC's consumer division and consumer loan products like home loans and car loans.
The document discusses banking and financing regulations and practices in Tanzania. It covers requirements for bank and non-bank lenders, types of security that can be taken over different asset classes, guarantees, enforcement of contracts and security, bankruptcy processes, and trends in cross-border financing. Key points include that banks must be licensed by the Bank of Tanzania, security can be taken through charges, pledges, mortgages and assignments but require registration, and insolvency processes provide for compromise arrangements, administration and winding up but creditors can influence the process.
Corporate Compliance Calendar for July, 2022taxguru5
"CORPORATE Compliance CALENDAR covers Compliance under Income Tax act, 1961, Compliance under Goods & Services Act, 2017, Compliance under Other Statutory Laws"
TaxGuru is a platform that provides Updates On Amendments in Income Tax, Wealth Tax, Company Law, Service Tax, RBI, Custom Duty, Corporate Law , Goods and Service Tax etc.
To know more visit https://taxguru.in/corporate-law/corporate-compliance-calendar.html
The depository is an organization which holds of investors in electronic form at the request of the investors through a depository participant registered. It also provides services related to transactions in securities.
The document discusses several recent judgments related to the Insolvency and Bankruptcy Code (IBC) in India. It summarizes rulings on:
- The liability of resolution applicants for contingent liabilities of corporate debtors.
- Treatment of contingent claims under the IBC.
- Priority of statutory dues owed to state governments and the concept of a "clean state" in resolution plans.
- Rulings establishing that approved resolution plans are binding on central/state governments and extinguish any claims not included in the plan.
Simmons Luxembourg Insights - May 2022LuxMarketing
The May 2022 edition of our Luxembourg newsletter is available now! We invite you to discover the latest and most important updates in the Luxembourg legal landscape! Inside, you will find news and links on asset management, funds, regulatory, banking finance, capital markets, corporate and tax law.
This document is a partnership agreement between Caltech Trading Korea Corp and Zhongnan Railway Holding Group Development (Thailand) Co., Ltd. for an investment of €950 billion. Caltech will provide the funding in tranches for Zhongnan's projects including real estate development in Western and Eastern Europe. The agreement outlines the parties, terms, roles and responsibilities, banking details, and transaction procedures.
This document provides information on setting up a fintech company in Colombia. It discusses the regulatory framework for fintechs, including laws governing specialized electronic payment companies (SEDPES), crowdfunding, investments by traditional financial institutions in fintechs, and low-value payment systems. It also describes Colombia's regulatory sandbox, which allows fintechs to obtain a temporary operating certificate to test innovative financial services under SFC supervision for up to two years. Requirements for incorporation depend on the fintech's activities - fintechs conducting financial activities require SFC authorization while those with different activities follow general incorporation rules.
The document provides updates on legal and business issues in Vietnam, including:
1) Advised on two M&A deals in Vietnam's pharmaceutical and software industries totaling over $45 million.
2) Proposed changes to Vietnam's law on cooperatives including allowing capital contributions to be transferred and introducing "undivided pools" of retained funds.
3) An upcoming decree on personal data protection in Vietnam that will impose more stringent requirements on data processors and cross-border data transfers.
This document is a promissory note and loan agreement between a lender (Missouri Development Finance Board) and borrower for a $25,000 loan at 3% interest to be repaid in quarterly installments. Key details include: the borrower will use the loan for the purposes stated in their application; the borrower provides collateral for the loan in the form of business assets and agrees to various covenants; events of default are outlined such as missing a payment or providing false information; and remedies for default include accelerating the loan and taking possession of collateral.
Guidelines for Modified Scheme for setting up of Compound Semiconductors and ...ssuser668a58
The document provides guidelines for the Modified scheme for setting up Compound Semiconductors / Silicon Photonics / Sensors Fab/ Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP)/ Outsourced Semiconductor Assembly and Test (OSAT) facilities in India. It outlines eligibility requirements including minimum capital expenditure thresholds, defines key terms, and describes the application process and parameters for fiscal support of 50% of eligible capital expenditures that will be provided on a pari-passu basis to approved projects.
The presentation consists:
Comparison of provision under ST and GST, Value of taxable supply, place of supply
Place of Supply _ GST
Taxable supplies
Bullion business vertical
Exempt services and supply
Analysis of Head wise Incomes earned by banks
Service Accounting Code
INPUT TAX CREDIT
List of common expenses & credit availability
How to Correct errors as Revision is not permissible
STOCK TRANSFER OF SERVICES_ ISD VS CROSS CHARGE
Some of the Grey areas
The SARFAESI Act gives banks powers to recover loans from defaulting borrowers. It allows banks to issue a 60-day notice for loan repayment. If unpaid, banks can take possession of secured assets and sell them to recover dues. The Act established Asset Reconstruction Companies regulated by RBI to acquire NPAs from banks. ARCs must be registered with RBI and meet net worth requirements. They can issue security receipts to qualified buyers and investors for acquired assets. The DRT provides an avenue for borrower appeals, which must be filed within 45 days with 50% of claimed dues deposited.
This document is the Moneylenders Act from Singapore that outlines regulations for moneylending businesses. It defines key terms, sets rules for licensing of moneylenders, and establishes regulations around interest rates, record keeping, inspections and enforcement. Specifically, it requires moneylenders to be licensed, limits the interest and fees that can be charged, and gives regulatory authorities powers to audit records and inspect places of business.
Similar to Legal Constraints in P2P Payment Failure.pdf (20)
Indonesian Manpower Regulation on Severance Pay for Retiring Private Sector E...AHRP Law Firm
Law Number 13 of 2003 on Manpower has been partially revoked and amended several times, with the latest amendment made through Law Number 6 of 2023. Attention is drawn to a specific part of the Manpower Law concerning severance pay. This aspect is undoubtedly one of the most crucial parts regulated by the Manpower Law. It is essential for both employers and employees to abide by the law, fulfill their obligations, and retain their rights regarding this matter.
Regulatory Updates on Mineral and Coal Mining: Understanding the Latest Amend...AHRP Law Firm
In 2021, the Indonesian Government introduced Government Regulation Number 96 of 2021 on the Implementation of Mineral and Coal Mining Business Activities ("GR No. 96/2021"), which aimed to regulate various aspects of mineral and coal mining business activities comprehensively. However, recognizing the need to streamline bureaucracy, enhance legal and investment certainty, the Indonesian Government enacted Government Regulation Number 25 of 2024 on 30 May 2024, amending several provisions of GR No. 96/2021. Find out more about our insights on this topic in our Legal Brief publication.
Initial Public Offering for Issuers with Small-Scale and Medium-Scale Assets.pdfAHRP Law Firm
Initial Public Offering or commonly known as IPO provides both financial and non-financial benefits to the parties that conduct such, including increasing capitals, business expansion, and improving company's image. Further, big companies are not the only ones that may enjoy the benefit of IPO, as Small-Scale and Medium-Scale companies can also conduct IPO. Find out more our insights about this topic in our Legal Brief Publication.
Introducing New Government Regulation on Toll Road.pdfAHRP Law Firm
For nearly two decades, Government Regulation Number 15 of 2005 on Toll Roads ("GR No. 15/2005") has served as the cornerstone of toll road legislation. However, with the emergence of various new developments and legal requirements, the Government has enacted Government Regulation Number 23 of 2024 on Toll Roads to replace GR No. 15/2005. This new regulation introduces several provisions impacting toll business entities and toll road users. Find out more out insights about this topic in our Legal Brief publication.
Paving The Path for a Greener Future via Presidential Regulation Number 112/2...AHRP Law Firm
Embracing the spirit of Paris Agreement, the Government of Indonesia has issued Presidential Regulation Number 112 of 2022 on Acceleration of Renewable Energy Development for Power Supply (“PR 112/2022”) as an inaugural step to gradually implement renewable energy power plants in replacing coal-fired power plants. Moving forward, the government continues to take the leap in facilitating the transition through Minister of Finance Regulation Number 103 of 2023 on the Provision of Fiscal Support through the Funding and Financing Framework for the Acceleration of Energy Transition in the Electricity Sector (“MoFR 103/2023”). With the hope of greener earth, the Indonesian Government is yet on track to build a sound regulatory framework while ensuring lucrative framework for investors. Find out more our insights about this topic in our Legal Brief publication.
Initial Public Offering of Mining Companies: Matters to be Considered.pdfAHRP Law Firm
The capital market provides a solution for companies to obtain funding through offering a portion of the company's shares to the public or IPO. This process also transforms the company from a closed entity to an open one where it is required to be managed in more effective, professional, and transparent manners. Essentially, all companies have the opportunity to become publicly listed and have their shares traded on the IDX. However, there are several points to note in the listing requirements for mining companies to conduct an IPO. With the issuance of Decree of the Board of Directors of the Indonesia Stock Exchange Number I-A.1 Kep-00100/BEI/10-2014 on the Listing of Shares and Equity Securities Other than Shares Issued by Companies in the Mineral and Coal Mining Sector ("I-A.1 Reg."), eases in conducting IPO are provided for mining companies. In addition to the requirements under I-A.1 Reg, mining companies are also required to meet the requirements under Decree of the Board of Director of the Indonesia Stock Exchange Number I-A Kep-00101/BEI/12-2021 on Amendment to Regulation No. I-A concerning the Listing of Shares and Equity Securities Other Than Shares Issued by Listed Companies. Find out more our insights about this topic in our Legal Brief publication.
The Establishment of Indonesia's First Crypto Bourse: a Regulatory Overview.pdfAHRP Law Firm
As Indonesia unveils its state-backed Crypto Bourse, it marks a strategic move towards regulated and secure cryptocurrency trading. This new platform will facilitate enhanced oversight and stability in the digital economy, promising a safer environment for investors and traders alike. Find out more our insights about this topic in our Legal Brief publication.
The Intricacies of Proceedings in the Constitutional Court.pdfAHRP Law Firm
The Constitutional Court, as one of the judicial power institutions, has the features of protecting and maintaining the 1945 Indonesian Constitution through diverse attribution authorities. Recently, the Constitutional Court has become the object of public dialogue due to numerous events, specifically on the 2024 presidential election dispute. Henceforth, a comprehensive illustration of Constitutional Court duties and procedures, with additional insight of precedent of disputes adjudicated by the Constitutional Court would be favorable for public knowledge in light of the recent issues. Find out more of our insights about this topic Legal Brief publication.
Indonesia’s Model Document for Sustainable Procurement Selection for Construc...AHRP Law Firm
In an effort to achieve significant benefits and reduce negative impacts on the environment throughout the entire work cycle, the Deputy for Strategic Development and Policy of the National Public Procurement Agency (LKPP) issued NPPA Deputy Decree Number 3 of 2024 concerning the Sustainable Procurement Document Model for Construction Works (NPPA Deputy Decree 3/2024), which has been in effect since 19 February 2024. Find out more about our insights related to this topic in our Legal Brief publication.
Second Amandement to the Law No. 11/2008: Streghtening Legal Protection and C...AHRP Law Firm
In 2022, based on the data of the Central Bureau of Statistics, 66.48% of the Indonesian citizens have accessed internet. This number have increased by 4.38% from the number in 2021. Such rise of the internet utilization shows that electronic data and information has became the basic need in Indonesia.
At the same time, technology has been developing progressively worldwide. Transboundary transactions are inevitable. Moreover, data and information being accessible to any person regardless of his age. Therefore, the Government of Indonesia issued the Second Amendment of Law No. 11 of 2008 on Electronic Information and Transaction on January 2nd 2024 which one of the objectives is to provide clearer regulatory framework on the distribution of electronic data and information. Find out more our insights about this topic in our Legal Brief Publication.
Regulatory Reforms on Financial Technology Innovation with OJK Regulation No....AHRP Law Firm
OJK has taken a significant step forward with the enactment of OJK Regulation Number 3 of 2024 on the Implementation of Financial Sector Technology Innovation. This pivotal regulation aims to enhance the regulatory framework for financial sector technology innovation, reflecting OJK's commitment, as outlined in Law Number 4 of 2023, to the development and enforcement of the financial sector. With this regulation, OJK updates and expands upon the provisions for digital financial innovation established in the previous OJK Regulation Number 13/POJK.02/2018. Moreover, OJK is set to provide an innovative playground through its Sandbox, fostering a space for trial and innovation development. Find out more about our insights on this topic in our Legal Brief publication.
Simplification and Ease of User Data Verification: The Regulatory Framework f...AHRP Law Firm
The Facial Verification Technology (FVT) plays a crucial role in Electronic Know Your Customer (E-KYC) processes, improving security and operational efficiency by remotely confirming individuals' identities through several online authentication steps by utilizing users' data registered in population databases. The purpose of FVT itself is to reduce the risks of identity theft and fraud. Recently, the Financial Services Authority (OJK) issued OJK Reg. 3/2024 focusing on the Implementation of Financial Sector Technology Innovations. This regulation outlines the licensing procedure for FVT organizers, aligning with MoHA Reg. 102/2019, which addresses access rights for using population data. Moreover, the implementation of FVT must comply with data protection regulations, in particular, Law 27/2022 and OJK Reg. 3/2024. Find out more about our insights on this topic in our Legal Brief publication.
Issuance of Ministry of Energy and Mineral Resources Regulation No. 2 of 2024...AHRP Law Firm
Solar power is one of the key components of achieving zero emissions, as it is a renewable energy source that generates electricity without producing greenhouse gas emissions during operation. Accordingly, the Indonesian Government adjusted and amended the prevailing regulation to improve the development of rooftop solar power utilization that is suitable for the current circumstances through MoEMR Reg. No. 2/2024. Find out more our insights about this topic in our Legal Brief publication.
FIFA Regulations and Indonesia Football Business.pdfAHRP Law Firm
As a regulatory and administrative body of the world's most popular sport, FIFA plays an important role, from organizing the World Cup to regulating provisions on loans of players. Member countries of FIFA around the world, from North America, Central America, the Caribbean to Asia, including Indonesia with its PSSI, adhere to FIFA Statute as the epitome to regulate national football matches, developments, and industry. Find out more of our insights about this topic in our Legal Brief Publication.
Understanding Buyback Regulations In IndonesiaAHRP Law Firm
Buyback is a mechanism that allows companies to repurchase their stocks from their shareholders. There are several reasons why companies would opt to do this, amongst which are to reduce the cost of capital, ownership consolidation, preserving stock prices, undervaluation, and boosting their key financial ratios. The key principle for buyback in Indonesia is that it must be done with transparency and within a certain period of time. Find out more of our insights about this topic in our Legal Brief publication.
Navigating the Complexities in Issuance of KKPR (Suitability of Spatial Utili...AHRP Law Firm
Property ownership in business development, particularly over the land, is undeniably crucial. Since the presidential era of Joko Widodo, licensing related to land permits have undergone transformation, including integration of digital system usage. However, given that Indonesia is an archipelago with diverse geographical conditions, the licensing process for land ownership via digital does not necessarily provide a proper solution. Following this, The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency has issued a legal document in the form of technical guidelines, which serves as a guide for applicants to submit offline registrations. Find out more of our insights about this topic in our Legal Brief publication.
FSRU procurement for Oil and Gas Upstream Business (clauses and legal concern...AHRP Law Firm
Indonesia as a maritime country has its own challenges in meeting its domestic needs, including the needs for oil and natural gas. The spread of large cities across Indonesia creates the need for sophisticated and efficient transportation equipment related to natural gas needs. Floating Storage and Regasification Unit or what is known as FSRU is one answer to this problem. The form of FSRU is in the form of a ship and most of it comes from foreign countries, making its procurement interesting to study further. Find out more of our insights on this topic in our Legal Publication.
Reducing the Incremental Capital Output Ratio (ICOR) from a legal perspective...AHRP Law Firm
The Incremental Capital Output Ratio (ICOR) is gaining attention in Indonesia as a tool to evaluate capital investment efficiency and economic output. It is evident that a favorable ICOR result can significantly impact a nation's growth. However, an unfavorable ICOR result may present challenges to a nation, necessitating appropriate policy responses. Additionally, a comparative study may be needed to learn and implement key strategies from other countries as lessons learned. Find out more our insights about this topic in our Legal Brief publication.
In addressing DMO violations caused by the significant gap between the market price of coal and domestic coal prices, the Indonesian government is currently formulating legislation to establish an entity empowered to collect and disburse compensation funds as a penalty for DMO non-compliance. In 2022, the Indonesian government initially decided to establish a Public Service Agency (BLU) to implement the collection-disbursement scheme. However, the plan for the formation of the BLU entity underwent a transformation into MIP in January 2023. Find out more our insights about this topic in our Legal Brief Publication.
K3 Compliance for Smelter Usage in Nickel Mining: A Look at Morowali Smelter ...AHRP Law Firm
In the aftermath of a devastating Morowali smelter workplace accident, the industrial landscape is marred by the harsh realities of occupational hazards. Within the heart of the smelting facility, a momentary lapse in safety measures has given rise to a cascade of consequences. Emergency responders and fellow workers converge amidst the chaos, grappling with the profound impact on lives and the workplace. This tragic incident serves as a poignant reminder of the imperative need for rigorous safety protocols in industrial settings. It sparks urgent conversations about the balance between productivity and employee well-being, prompting a collective reevaluation of safety cultures and procedures. The smelter workplace accident becomes a rallying point for change, advocating for a future where the crucible of industry remains a site of creation, not catastrophe. Find out more our insights about this topic in our Legal Brief publication.
Pedal to the Court Understanding Your Rights after a Cycling Collision.pdfSunsetWestLegalGroup
The immediate step is an intelligent choice; don’t procrastinate. In the aftermath of the crash, taking care of yourself and taking quick steps can help you protect yourself from significant injuries. Make sure that you have collected the essential data and information.
Integrating Advocacy and Legal Tactics to Tackle Online Consumer Complaintsseoglobal20
Our company bridges the gap between registered users and experienced advocates, offering a user-friendly online platform for seamless interaction. This platform empowers users to voice their grievances, particularly regarding online consumer issues. We streamline support by utilizing our team of expert advocates to provide consultancy services and initiate appropriate legal actions.
Our Online Consumer Legal Forum offers comprehensive guidance to individuals and businesses facing consumer complaints. With a dedicated team, round-the-clock support, and efficient complaint management, we are the preferred solution for addressing consumer grievances.
Our intuitive online interface allows individuals to register complaints, seek legal advice, and pursue justice conveniently. Users can submit complaints via mobile devices and send legal notices to companies directly through our portal.
Business law for the students of undergraduate level. The presentation contains the summary of all the chapters under the syllabus of State University, Contract Act, Sale of Goods Act, Negotiable Instrument Act, Partnership Act, Limited Liability Act, Consumer Protection Act.
Genocide in International Criminal Law.pptxMasoudZamani13
Excited to share insights from my recent presentation on genocide! 💡 In light of ongoing debates, it's crucial to delve into the nuances of this grave crime.
Corporate Governance : Scope and Legal Frameworkdevaki57
CORPORATE GOVERNANCE
MEANING
Corporate Governance refers to the way in which companies are governed and to what purpose. It identifies who has power and accountability, and who makes decisions. It is, in essence, a toolkit that enables management and the board to deal more effectively with the challenges of running a company.
The presentation deals with the concept of Right to Default Bail laid down under Section 167 of the Code of Criminal Procedure 1973 and Section 187 of Bharatiya Nagarik Suraksha Sanhita 2023.
2. INDONESIA’S P2P FUNDING OVERVIEW
The recognized term for P2P funding in Indonesia is Information
Technology-Based Co-Funding Services, which is the provision of
financial services to bring together funders and fund recipients in
conducting conventional funding or based on sharia principles directly
through an electronic system by using the internet.
Organizer
[Art. 1 (8) OJK Reg. No. 10/2022]
Funder
[Art. 1 (10) OJK Reg. No. 10/2022]
Funding Agreement
[Art. 30 and 32 OJK Reg. No. 10/2022]
Organizer-Funder Agreement
[Art. 30 and 31 OJK Reg. No. 10/2022]
Fund Recipient
[Art. 1 (9) OJK Reg. No. 10/2022]
concerning Technology-Based
Fund-Lending Services
OJK Reg 77/2016 01
concerning Technology-Based
Co-Funding Services
OJK Reg 10/2022
02
Types of Funding
Funding for business that produces goods and/or services,
including business that provides added value and increase income
for Fund Recipients [Art. 25 (1) a OJK Reg. No. 10/2022].
Productive
Funding
Multipurpose
Funding
Funding for goods and/or services required by Fund Recipients for
use/consumption and not for business purposes or productive activities
within the agreed period [Art. 25 (1) b OJK Reg. No. 10/2022].
A H R P L e g a l B r i e f
3. STAKEHOLDERS & AGREEMENTS
IN P2P FUNDING
PT Investree Radhika Jaya PT Mitrausaha Indonesia
Group
PT Amartha Mikro Fintek PT Lunnaria Annua Teknologi
PT Akseleran Keuangan
Inklusif Indonesia
PT Kredit Pintar Indonesia
Examples of P2P Organizers Registered in OJK
an Indonesian legal entity that
provides, manages, and operates P2P
Platform either conventionally or based
on Sharia Principles.
[Art. 1 (8) OJK Reg. No. 10/2022]
individuals, legal entities, and/or
business entities that provide
funding.
[Art. 1 (10) OJK Reg. No. 10/2022]
individuals, legal entities, and/or
business entities that receive
funding.
[Art. 1 (9) OJK Reg. No. 10/2022]
Funder Funding Recipient Organizer
a. agreement number
b. agreement date
c. identity of the party in the form of the
names and identification of the
Funder
d. rights and obligations of the parties
e. funding amount
f. funding economic benefits
g. commission amount
h. contract period
i. details of fee
j. provision on fines (if any)
k. use of personal data
l. mechanism for funding collection
m. risk mitigation in the event of non-
performing funding
n. mechanism for dispute settlements
o. mechanism for the settlement of
rights and obligations in the event
that Organizer fails to continue their
operational activities
a. agreement number
b. agreement date
c. identity of the parties
d. rights and obligations of the parties
e. funding amount
f. funding economic benefits
g. instalment value
h. contract period
i. collateral objects (if any)
j. related fees
k. provision on fines (if any)
l. use of personal data
m. mechanism for dispute settlements
n. mechanism for the settlement of
rights and obligations in accordance
with provisions of laws and
regulations if Organizer fails to
continue their operational activities
Organizer-Funder Agreement Funding Agreement
Agreement between Organizer and Funder shall
be set forth in an electronic document which
must at least contain [Art. 31 (2) OJK Reg. No.:
10/2022]:
Funding agreement between Funder and Fund
Recipient shall be set forth in an electronic
document which must at least contain [Art. 32
(2) OJK Reg. No. 10/2022]:
A H R P L e g a l B r i e f
4. KEY PROVISIONS CONCERNING
ORGANIZERS
A H R P L e g a l B r i e f
Organizer
must fulfil the
maximum
funding limit
provision:
1
2
to every Fund Receiver
by every Funder and
its afiliates
IDR 2 billion
[Art. 26 (3) OJK Reg. No. 10/2022].
25% of the final position of funding
at the end of month
50% of the final position of funding
at the end of month
80% of the final position of funding
at the end of month
75% of the final position of funding
at the end of month
Funder Not
Surpervised by OJK
Funder Surpervised
by OJK
18
months
12
months
6
months
after
4 July 2022.
by no
later than
Capital and Equity Shareholders Notable Restrictions
Min. Paid-Up Capital
IDR 25 million
[Art. 4 (1) OJK Reg. No. 10/2022].
Min. Equity
IDR 12.5 billion, which is fulfilled
in 3 phases [Art. 50 OJK Reg. No.
10/2022]:
1) IDR 2.5 billion applicable 1
year after 4 July 2022.
2) IDR 7.5 billion applicable 2
years after 4 July 2022.
3) 12.5 billion applicable 3 years
after 4 July 2022.
Shares of Organizers may be owned by [Art. 3
OJK Reg. No. 10/2022]:
1) Indonesian individuals and/or legal entities;
or
2) Indonesian individuals and/or legal entities
with foreign individuals and/or legal entities.
Foreign share ownership is max. 85% (does not
apply to public companies in IDX)
[Art. 3 (4) OJK Reg. No. 10/2022].
Organizer must determine at least 1 (one)
Controlling Shareholder [Art. 5 (1) OJK Reg. No.
10/2022].
Change of shareholders must obtain OJK
approval (except for change of shareholders of
public companies in IDX) [Art. 68 (1) OJK Reg.
No. 10/2022].
Sources of funds for equity participation
in an Organizer is prohibited from
loans and funds arising from financial
crimes [Art. 4 (3) a OJK Reg. No. 10/2022].
Prohibited to act as Funder or Fund
Recipient [Art. 111 (b) OJK Reg. No.
10/2022].
Prohibited to act on behalf of Funder to
carry out funding and/or provide
automatic funding feature [Art. 111 (c)
OJK Reg. No. 10/2022].
Prohibited to provide securities in any
form for the fulfilment of other parties
[Art. 111 (f) OJK Reg. No. 10/2022].
Prohibited to issue letter of indebtness
[Art. 111 (g) OJK Reg. No. 10/2022].
[Art. 26 (5) OJK Reg No. 10/2022]
[Art. 26 (6) and (7) OJK Reg No. 10/2022]
5. PAYMENT FAILURE
A H R P L e g a l B r i e f
96.64 3.36
TKB90 TWP90
TKB90 is the measurement of the
Organizer’s success rate in facilitating the
settlement of funding obligations within a
period up to 90 days from the due date.
TWP90 is the measurement of default or
negligence in the settlement of obligations
stated in the funding agreement above 90
days from the due date.
96,00%
96,20%
96,40%
96,60%
96,80%
97,00%
97,20%
97,40%
97,60%
97,80%
M
A
Y
-
2
2
J
U
N
-
2
2
J
U
L
-
2
2
A
U
G
-
2
2
S
E
P
-
2
2
O
C
T
-
2
2
N
O
V
-
2
2
D
E
C
-
2
2
J
A
N
-
2
3
F
E
B
-
2
3
M
A
R
-
2
3
A
P
R
-
2
3
M
A
Y
-
2
3
0,00%
0,50%
1,00%
1,50%
2,00%
2,50%
3,00%
3,50%
4,00%
M
A
Y
-
2
2
J
U
N
-
2
2
J
U
L
-
2
2
A
U
G
-
2
2
S
E
P
-
2
2
O
C
T
-
2
2
N
O
V
-
2
2
D
E
C
-
2
2
J
A
N
-
2
3
F
E
B
-
2
3
M
A
R
-
2
3
A
P
R
-
2
3
M
A
Y
-
2
3
Performing
Special Mention
Substandard
Doubtful
Non-performing
if there is no delay in payment of the principal and/or
economic benefits of the funding.
if there is a delay in payment of principal and/or
economic benefits of the funding that has exceeded its
maturity date by up to 30 (thirty) calendar days.
if there is a delay in payment of principal and/or
economic benefits of the funding which has exceeded
30 (thirty) calendar days up to 60 (sixty) calendar days.
if there is a delay in payment of principal and/or
economic benefits of the funding which has exceeded
60 (sixty) calendar days up to 90 (ninety) calendar days.
if there is a delay in payment of principal and/or
economic benefits of the funding which has exceeded
90 (ninety) calendar days.
Financial Performance of Fintech Lending Company (Organizers)
(May 2022 - May 2023)
TKB90 TWP90
Based on recent OJK Statistics, the TKB90
and TWP90 per May 2023 are as follows:
Classification of Funding Quality of Organizers
As seen from the statistics issued by OJK, it
is understood that P2P funding schemes are
exposed to payment default, reaching the
status of non-performing funds, which is a
delay in payment for more than 90 (ninety)
calendar days.
Upon observing the data from May 2022 to
May 2023, there is a downward trend for
TKB90 (success rate) and upward trend for
TWP90 (default rate).
[Art. 51 (2) OJK Reg No. 10/2022]
6. RISK MITIGATION
A H R P L e g a l B r i e f
Under Art. 35 (3) and (4) OJK Reg. No.
10/2022, Organizers must facilitate risk
mitigation for Users (Funders & Funding
Recipients), which at least include:
conducting a risk analysis of
funding proposed by Funding
Recipients;
conducting a verification of
Users’ identity and document
authenticity
conducting collection of funding
that is channeled optimally
facilitating the transfer of funding
risk
facilitating the transfer of risk on
a collateral object, if there is a
collateral object
a
b
c
d
e
01
Under Art. 38 (1), (2), (3b) OJK Reg. No.
10/2022, Organizer may cooperate with
financial service institutions and non-financial
institutions, among others, for facilitating the
management of risk mitigation.
02
Organizer shall conduct a scoring on
prospective Fund Recipient. Should the Fund
Recipient be deemed worthy of receiving fund,
they shall be presented as one of the options
in the list of prospective Fund Recipient before
the Funder.
Organizer could independently give efforts to
obtain fulfilment of payment obligation or could
transfer the obligation to a third party.
Through insurance or securities as agreed
between the Funder and the Organizer in a
prior agreement.
Under Art. 26 OJK Reg. No. 10/2022, the
Organizers must implement Maximum
Funding Limit as follows:
03
IDR 2 billion to Funding
Recipient, with a condition that
the Fund Recipient must return
half or full of the received funds
before obtaining more funds in
the P2P scheme.
a
Funders can provide maximum
percentage of the final position of
funding at the end of month,
based on stages (see slide 4).
b
Pursuant to letter (d) and (e) above, it is understood that
securities and insurances are available in the context of P2P
funding. However, it is optional in nature.
To protect the Funder’s interest in this scheme, the Funder may
opt for a credit insurance mechanism as prescribed in OJK Reg.
No. 69/2016 to guarantee the fulfilment of the Funding Recipient’s
financial obligations towards the Funder.
In United Kingdom, the Financial Conduct Authority (FCA)
also implements similar regulations concerning risk
mitigation in P2P funding, such as (i) credit scoring of the
prospective funding recipients as the basis of determining
which of the funding recipient shall receive the fund and
(ii) the existence of maximum funding limit provided by
the funder to the P2P platform for the funding recipient.
Furthermore, the FCA has also implemented contingency
funds in P2P which allows the funders to obtain a return
in the event of fund recipients’ default.
7. DISPUTE SETTLEMENT
INSTITUTIONS
A H R P L e g a l B r i e f
Financial Services
Institution or Pelaku
Usaha Jasa Keuangan
(PUJK)
Alternative Institution for Financial
Services Sector Dispute Resolution
or Lembaga Alternatif Penyelesaian
Sengketa Sektor Jasa Keuangan
(LAPS SJK)
District Court
L A P S
S J K
C O U R T
P U J K
The district court is a first
instance court in Indonesia
which is eligible to examine
and adjudicate cases
including but not limited to
civil disputes based on (i)
breach of contract or (ii) tort
claim [HIR].
LAPS SJK is an institution that settles
disputes in the financial services sector
outside of court [Art. 1 (1) OJK Reg. No.
61/2010].
PUJK is an institution engaged in
the financial services sector, one
of which is the Organizer based on
Art. 1 (3) OJK Reg. No. 61/2020.
PUJK is required to receive and
record every complaint submitted
by consumers (including Funders
and Funding Recipients) and or
consumer representatives [Art. 7
(1) OJK Reg. No. 18/2021].
8. DISPUTE SETTLEMENT
MECHANISMS
A H R P L e g a l B r i e f
Warning Letters Complaint to PUJK
The Organizer is obliged to issue
warning letters to the Funding
Recipient who defaulted in
accordance with the time limitation
as stipulated in the Funding
Agreement. Further, the Organizer
is eligible to cooperate with other
parties to contact the Funding
Recipient [Art. 102 - 103 OJK Reg.
No. 10/2022 Jo. Art. 1238
Indonesian Civil Code].
PUJK is obliged to receive and
register every complaint filed by
either the funder or the funder
recipient and/or his/her/its
representatives [Art. 7 (1) OJK
Reg. No. 18/2018].
Alternative Dispute Resolution
Institution in Financial
Services
Court
In the event the Funding Recipient
still does not fulfil their payment
obligation after receiving warning
letters and complaint to PUJK, the
Funder could follow up the
settlement through court, either by:
LAPS SJK can adjudicate disputes
that have fulfilled the following
criteria [Art. 102 Jo. 103 OJK Reg.
No. 10/2022]:
PUJK can submit responses in the
form of (i) explanation of the
problem, in the event that the
problem which causes a loss and/or
potential loss for the Consumer did
not arise out of PUJK’s error; or (ii)
offer a settlement, in the event that
the loss and/or potential loss of the
Consumer is caused by PUJK’s
error [Art. 25 (1) OJK Reg. No.
18/2018].
In the event that the Consumer
and/or Consumer Representative
rejects the Complaint Response
from the PUJK, then the PUJK is
required to provide information to
Consumers and/or Consumer
Representatives regarding efforts to
resolve the dispute that can be
done through the court or outside
Court [Art. 25 (1) OJK Reg. No.
18/2018].
creating a Notarial Deed on
Debt Acknowledgment which
is deemed the same as a
legally final and binding court
decision and therefore, could
be executed immediately
[Art. 1878 Indonesian Civil
Code]; or
Filing a civil lawsuit based on
breach of contract where the
Funding Recipient does not
fulfil their contractual
payment obligation or based
on tort. However the basis is
subject to further analysis of
the facts [Art. 118 HIR].
01 02
02 03a 03b
efforts have been made to
resolve the complaint by the
PUJK but have been rejected
by the Consumer (including
Funder and Funding
Recepient) or the Consumer
(including Funder and
Funding Recepient) has not
received a response to the
complaint;
the dispute submitted is not
an ongoing dispute that is
currently in process or has
been decided by a court,
arbitration, or other
alternative dispute resolution
institutions; and
civil in nature.
9. KEY TAKE-AWAYS FROM P2P FUNDING
IMPLEMENTATION
01
02
03
04
The P2P funding scheme is different in the sense that the Funder and Funding
Recipient carry out funding through an electronic platform which sets aside the
conventional bank as intermediate. P2P funding in Indonesia is regulated under
OJK Reg 10/2022, which mainly highlights the P2P Organizer’s roles and
responsibilities.
To avoid payment failure, OJK Reg 10/2022 has set forth risk mitigation provisions for Organizers,
which are comparable to the norms applied in international practices. Notwithstanding, payment failure
is viewed as the Funder’s risk, as there is no clearly expressed liability towards the Funding Recipient
in the event of default, considering that securities and insurances are optional. Thus posing as the main
legal constraint in the implementation of P2P funding, as there is lack of recourse for Funder to obtain
returns.
In the event that the Funding Recipient defaults, the Organizer issues a warning letter,
either by itself or in cooperation with other parties. In addition, Funders can also opt to
send a complaint to the Organizer. Futher steps are also available through alternative
dispute resolution via LAPS SJK, as well as civil litigation via the relevant district court.
[
A H R P L e g a l B r i e f
The occurrence of payment failure or default in P2P funding scheme is recorded by OJK through
indicator TWP90, whereby recently amounts to a rate of 3.36% per May 2023. In account of OJK’s
statistics since May 2022 - May 2023, there is an incline of default rate and subsequent decrease in
success rate of P2P funding based on the Organization’s performance.
10. We will continue to follow the developments on this topic and provide additional information as it
becomes available. If you have any questions on this topic, please contact:
Gradita Maharani Purukan
gradita@ahrplaw.com
Tariq Hidayat Pangestu
tariq@ahrplaw.com
Stacia Faustine
stacia@ahrplaw.com
This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not
intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee concerning
the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it applies to your
circumstances before deciding to take any action.
World Capital Tower 19th floor
Jl. Mega Kuningan Barat No.3, Kuningan
Jakarta 12950 Indonesia
P: +6221 50917915
+6221 50917916
E: office@ahrplaw.com
www.ahrplaw.com