Legal Protection for Consumers Against Illegal Online Lending Practices: A Normative-Empirical Study in West Java, Indonesia

Abstract

The rapid growth of financial technology has given rise to illegal online lending practices that operate outside the supervision of the Financial Services Authority, causing significant harm to cons umers in West Java, one of the provinces with the highest number of reported illegal fintech lending complaints in Indonesia. This study aims to analyze the legal protection available to consumers affected by illegal online lending practices and to examine the effectiveness of law enforcement against such practices in West Java. Using a normative-empirical legal research method combining statutory analysis with field interviews and case documentation from the West Java OJK Regional Office and the West Java Regional Police, this study finds that although Indonesia has established a regulatory framework through Law No. 8 of 1999 on Consumer Protection, OJK Regulation No. 10/POJK.05/2022, and the Personal Data Protection Law (Law No. 27 of 2022), enforcement remains weak due to limited digital forensic capacity, the cross-jurisdictional nature of illegal lending applications, and low legal literacy among victims. The study recommends strengthening inter-agency coordination, accelerating digital-based law enforcement mechanisms, and intensifying legal literacy programs for the public in West Java.