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VOL. 12, ISSUE 2 (2026)
Protection of personal data in online loan transactions in Banda Aceh City
Authors
Muhammad Reza Fahlevi, M Jafar, Zainal Abidin
Abstract
Online loan services, or
financial technology lending (fintech lending), have emerged as a rapid
alternative to address the economic requirements of the community. This
advancement also presents significant concerns, notably the widespread
exploitation of personal data by negligent entities. Article 65, paragraph (1)
of the Personal Data Protection Law stipulates: "It is prohibited for any
individual to unlawfully acquire or collect personal data not belonging to them
for personal or third-party gain, which may cause detriment to the data subject.
The issue is that this online loan service provides convenience and rapid
access to funds without intricate bureaucratic procedures. Nonetheless, beneath
that convenience, significant concerns emerge over personal data protection,
particularly in instances of identity theft for illicit loan applications. The
unauthorised use of ID card numbers, phone numbers, and selfies to apply for
online loans without the consent of the data owner. This research seeks to
elucidate the efficacy of legal safeguards for personal data proprietors in
instances of identity exploitation inside online lending services. The employed
study methodology is empirical juridical, utilising a sociological legal
approach. The utilised data comprises both primary and secondary sources.
Primary data was gathered using structured interviews, while secondary data was
obtained via literature review. Subsequently, the data were analysed
qualitatively using deductive reasoning to address the research problem
formulation. The research findings indicate that the efficacy of legal
protection for personal data in online loans is not attributable to a
deficiency of regulations, but rather to inadequate enforcement and oversight,
as legal protection relies not solely on the presence of rules, but also on
their implementation. In Aceh, inefficient legal protection is mostly
attributed to inadequate inter-agency coordination, limited public literacy,
insufficient oversight, and low public awareness, exacerbated by the swift
advancement of technology.
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Pages:448-452
How to cite this article:
Muhammad Reza Fahlevi, M Jafar, Zainal Abidin "Protection of personal data in online loan transactions in Banda Aceh City". International Journal of Law, Vol 12, Issue 2, 2026, Pages 448-452
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