CIVIL LIABILITY IN INFORMATION TECHNOLOGY-BASED LENDING AGREEMENTS FROM THE PERSPECTIVE OF LEGAL PROTECTION FOR CREDITORS AND DEBTORS

Abstract

The development of information technology has brought significant changes in civil law practices, particularly in loan agreements. While previously loan agreements were only conducted conventionally between creditors and debtors, with the advent of financial technology or peer-to-peer lending, the agreement mechanism has become more complex because it involves platform providers as third parties. This study aims to analyze the forms of civil liability in information technology-based loan agreements and examine how legal protection for creditors and debtors can be realized. The research method used is normative juridical, by examining relevant laws and regulations, legal doctrine, and cases that have emerged in Indonesia. The results show that civil liability in digital loan agreements is not only attached to the debtor as the borrower, but also to the platform provider, who is obliged to provide transparent information, maintain data security, and ensure collection mechanisms comply with the law. Legal protection for creditors needs to be strengthened to ensure the right to loan repayment, while protection for debtors is important to prevent exploitative practices through standard clauses and opaque interest rates. Furthermore, this study also found that the government's role through regulations from the Financial Services Authority (OJK) still faces significant challenges, particularly in monitoring the rise of illegal online lending practices. Therefore, regulatory harmonization between the Civil Code, the Electronic Information and Transactions Law (ITE Law), the Consumer Protection Law, and the Financial Services Authority (OJK) regulations is necessary to address legal dynamics in the digital era. This study emphasizes that Indonesian civil law must undergo a progressive transformation to provide a fair balance of legal protection for creditors, debtors, and the wider community.