Mandatory Escrow Account As A Manifestation Of Good Faith In Peer-To-Peer Lending

Abstract

This study was aimed at analyzing manifestation of the principle of good faith in financial services business 4.0 Peer to Peer Lending (P2P Lending) in the form of mandatory escrow accounts in financial system used by the P2P Lending in Indonesia as referred to in Article 24 paragraph (1) POJK No. 77/POJK.01/2016. This studybelongs toa normative legalresearch that is prescriptive and technical/applied. This study is the result of legal research using a legal approach and a conceptual approach. It used primary legal materials and secondary legal materials. The legal materials were collected through technique of literature study and analyzed using qualitative methods. The results of this study indicated that P2P lending cannot provide credit, it can only act as an intermediary between the fund lenders and borrowers, therefore fundraising and bookbuilding must be stored in an Escrow Account for a maximum of 2 days to avoid fund misappropriation as well as a means of money laundering and distribution of terrorism funds. Such rule, on one hand, does not provide a conducive space for organizers to maximize the funds (not in accordance with Posner’s Pareto efficiency) since the prevention instrument has not been optimally used until the Escrow Account as a good faith in the P2P Lending applies to lenders and borrowers, but not to loan providers. On the other hand, the banking sector also does not agree because having to transfer funds to other banks in a short period of time can affect banking liquidity, meanwhile the instrument for preventing these concerns has not been optimally used. For this reason, the impact on the P2P Lending performance is not optimal as a driver of financial inclusion in developing financial business in the digital era 4.0.