Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Abstract

Adoption of Financial Technology in Crowdfunding as Business Financing in Indonesia

Author(s): Paramita Prananingtyas, Irawati Irawati

Crowfunding is a type of financial technology platform that funding a project or venture by raising money from a large number of people. There are three actors in crowdfunding, first is the project owner, second is the crowdfunder and third is the donator. As a new way of raising money for business financing crowdfunding is very interesting subject to discuss. This paper is a research paper, to analyze the utilization of crowdfunding in business financing in Indonesia and to analyze the obstacle of crowdfunding in business financing in Indonesia. The methodology of this research is an empirical legal research. The research finding are Indonesian business association already utilized the crowdfunding platform to finance several business sectors such as realestate, modern store franchise, movie production etc. The obstacle of crowdfunding utilization was the absence of financial technology regulation, including the crowdfunding regulation, many investors did not understand about the crowdfunding platform scheme and its risk.

Get the App