Abstract
Peer-to-peer (P2P) online lending has the potential to boost innovation and financial inclusion in emerging markets, yet it can also incur investment and borrower-related risks, such as privacy breaches.
Driven by regulation control in China, Chinese investments flocked to Indonesia, causing a rapid expansion of online lending platforms.
Similar to what happened in China prior to the regulatory crackdown, the P2P lending boom in Indonesia saw a rise in unethical and illegal business practices. The government responded by creating new regulations and institutions to mitigate risks without stifling the potential for financial inclusion.
A proactive approach towards monitoring and regulating emerging high-tech industries should be sought by strengthening links with industry and civil society, and through international cooperation for policy and knowledge sharing.
Publication Date
Summer 2022
Report Number
HKUST IEMS Thought Leadership Brief No. 67
Repository Citation
Tritto, Angela; He, Yujia; and Junaedi, Victoria Amanda, "Chinese-backed FinTech Lending Boom: How did Indonesia Respond?" (2022). Diplomacy and International Commerce Reports. 2.
https://uknowledge.uky.edu/patterson_reports/2
Included in
Asian Studies Commons, Development Studies Commons, Finance Commons, Finance and Financial Management Commons, International Business Commons, International Relations Commons, Political Economy Commons, Science and Technology Policy Commons, Science and Technology Studies Commons, Technology and Innovation Commons
Notes/Citation Information
Tritto, A., He, Y., Junaedi, V.A. (2022). Chinese-backed FinTech Lending Boom: How did Indonesia Respond?. HKUST Institute for Emerging Market Studies Thought Leadership Brief No. 67. https://iems.ust.hk/assets/publications/thought-leadership-briefs/2022/hkustiems-chinese-backed-fintech-lending-boom-indonesia-respond-tritto-he-junaedi--tlb67.pdf