The Existence of Financial Services Authority in Handling Illegal Financial Technology Companies

Abstract

. Financial technology (fintech) companies grow rapidly in Indonesia. Besides the existence of fintech which can help society in accessing financial products, it can also give the negative impacts that can harm society, for example is the high number of infringement complains towards illegal fintech companies. This status quo is not consentient with the aims of Law Number 21 of 2011 about Financial Services Authority (FSA) which focuses on sustainability and stability of financial services sector growth and protecting consumer and society’s interest. The aim of this study is to fully elaborate the existence of FSA that contains FSA’s duties, authorities, and obstacles in handling illegal fintech companies. The design of this study is an empiric normative law with a descriptive type and applied law approach. The result of this study shows that FSA has duty and function in organizing system setting and controlling financial services sector. FSA not only has authority to establish operational policy and administrative penalty for the companies who break laws, but also to prevent disadvantages, give service to the consumer’s denunciation, and give law defense for consumer’s behalf. The obstacles which face FSA in handling the existence of illegal fintech companies is coming from both internal and external side.