Overcoming Regulatory Hurdles in the Indonesian Crowdfunding Landscape


  • Afif Noor Faculty of Sharia and Law, Universitas Islam Negeri Walisongo, Semarang, Indonesia https://orcid.org/0000-0002-8427-0168
  • Ismail Marzuki Faculty of Sharia and Law, Universitas Islam Negeri Walisongo, Semarang, Indonesia https://orcid.org/0009-0007-0395-9814
  • Edy Saputro Detecon Al Saudia Co. Ltd., Riyadh, Saudi Arabia
  • Muhammad Akmal Habib The University of Sidney, Australia




Crowdfunding; Regulation; Legal Certainty; Justice.


With the exponential rise in crowdfunding, several pertinent issues have come to the fore. These include unauthorized access to personal data, exorbitant interest rates for funding recipients, and investor fund security concerns. Other issues, such as aggressive debt collection practices and misuse of donated funds, also warrant attention. The underdeveloped state of crowdfunding regulations in Indonesia, which offers insufficient legal certainty and protection, is often blamed for these issues. Thus, a thorough examination of the legal and regulatory framework governing crowdfunding in Indonesia is crucial. This study scrutinizes the legal norms, identifies, and harmonizes the diverse regulations applicable to crowdfunding in Indonesia. The findings underscore the necessity for enhancements in the laws and regulations pertinent to crowdfunding. Key areas of focus should include establishing a legal status for crowdfunding platforms, setting fair interest rates, fortifying investor fund security mechanisms, penalizing illegal crowdfunding activities, and intensifying oversight of fund usage in donation-based crowdfunding schemes. Equally crucial is the imposition of penalties for regulatory breaches in crowdfunding, reflecting a genuine commitment towards ensuring justice and legal certainty in all crowdfunding transactions.


Download data is not yet available.


Afif Noor, Moh. Arifin, Deni Parama Widia Astuti, Maria Anna Muryani, Noor Rosyidah, Dwi Wulandari, Aqila-Syarief Muhammad Afif. “Revolutionizing Indonesia ’ s Financial Landscape : The Impact of Information Technology on the Growth of Financial Technology Start-Ups.” Multidisciplinary Reviews 6, no. 4 (2023): e2023031. DOI: https://doi.org/10.31893/multirev.2023031

Ahlstrom, David, Douglas J. Cumming, and Silvio Vismara. “New Methods of Entrepreneurial Firm Financing: Fintech, Crowdfunding and Corporate Governance Implications.” Corporate Governance: An International Review 26, no. 5 (2018): 310–13. https://doi.org/10.1111/corg.12258. DOI: https://doi.org/10.1111/corg.12258

Akbar, Muhammad Fatahillah. “The Urgency of Law Reforms on Economic Crimes in Indonesia.” Cogent Social Sciences 9, no. 1 (2023). https://doi.org/10.1080/23311886.2023.2175487. DOI: https://doi.org/10.1080/23311886.2023.2175487

Alhammad, Muna M., Rawan AlOthman, and Chekfoung Tan. “Review of Crowdfunding Regulations across Countries: A Systematic Review Study.” Journal of Information Systems Engineering and Management 6, no. 4 (2021): em0145. https://doi.org/10.21601/jisem/11395. DOI: https://doi.org/10.21601/jisem/11395

Aludi. “Selengkapnya Anggota,” 2023.

Angkasa, Angkasa, Filep Wamafma, Ogiandhafiz Juanda, and Bhanu Prakash Nunna. Illegal Online Loans in Indonesia: Between the Law Enforcement and Protection of Victim. Lex Scientia Law Review. Vol. 7, 2023. https://doi.org/10.15294/lesrev.v7i1.67558. DOI: https://doi.org/10.15294/lesrev.v7i1.67558

Apendi, Sofyan. “Ketiadaan Peraturan Menteri Dalam Hierarki Peraturan Perundang-Undangan Nasional Dan Implikasinya Terhadap Penataan Regulasi Dalam Sistem Hukum Nasional.” PALAR (Pakuan Law Review 07 (2021): 111–26.

Bagheri, Afsaneh, Hasti Chitsazan, and Ashkan Ebrahimi. “Crowdfunding Motivations: A Focus on Donors’ Perspectives.” Technological Forecasting and Social Change 146, no. June 2018 (2019): 218–32. https://doi.org/10.1016/j.techfore.2019.05.002. DOI: https://doi.org/10.1016/j.techfore.2019.05.002

Bassani, Gaia, Nicoletta Marinelli, and Silvio Vismara. “Crowdfunding in Healthcare.” Journal of Technology Transfer 44, no. 4 (2019): 1290–1310. https://doi.org/10.1007/s10961-018-9663-7. DOI: https://doi.org/10.1007/s10961-018-9663-7

Battisti, Enrico, Fabio Creta, and Nicola Miglietta. “Equity Crowdfunding and Regulation: Implications for the Real Estate Sector in Italy.” Journal of Financial Regulation and Compliance 28, no. 3 (2020): 353–68. https://doi.org/10.1108/JFRC-08-2018-0109. DOI: https://doi.org/10.1108/JFRC-08-2018-0109

Bishnu Kumar Adhikary, Kenji Kutsuna, Takaaki Hoda. Crowdfunding Lessons from Japan’s Approach. Singapore: Springer, 2018. DOI: https://doi.org/10.1007/978-981-13-1522-0

Busse, Valerie. Crowdfunding – An Empirical Study on the Entrepreneurial Viewpoint. Lecture Notes on Data Engineering and Communications Technologies. Vol. 23. Springer International Publishing, 2019. https://doi.org/10.1007/978-3-319-98557-2_28. DOI: https://doi.org/10.1007/978-3-319-98557-2_28

Cicchiello, Antonella Francesca. “Harmonizing the Crowdfunding Regulation in Europe: Need, Challenges, and Risks.” Journal of Small Business and Entrepreneurship 32, no. 6 (2020): 585–606. https://doi.org/10.1080/08276331.2019.1603945. DOI: https://doi.org/10.1080/08276331.2019.1603945

Cox, Joe, and Thang Nguyen. “Does the Crowd Mean Business? An Analysis of Rewards-Based Crowdfunding as a Source of Finance for Start-Ups and Small Businesses.” Journal of Small Business and Enterprise Development 25, no. 1 (2018): 147–62. https://doi.org/10.1108/JSBED-05-2017-0165. DOI: https://doi.org/10.1108/JSBED-05-2017-0165

Cumming, Douglas, Lars Hornuf, Moein Karami, and Denis Schweizer. “Disentangling Crowdfunding from Fraudfunding.” Journal of Business Ethics 182, no. 4 (2023): 1103–28. https://doi.org/10.1007/s10551-021-04942-w. DOI: https://doi.org/10.1007/s10551-021-04942-w

Duncan, N.J., and T. Hutchinson. “Defining and Describing What We Do: Doctrinal Legal Research.” Deakin Law Review 37, no. 9 (2012): 1591–1601.

Dworkin, Ronald M. “The Model of Rules.” Theoretical and Empirical Studies of Rights, 2017, 45–77. https://doi.org/10.4324/9781315236353-5. DOI: https://doi.org/10.4324/9781315236353-5

Fateh Labanieh, Mohamad, Mohammad Azam Hussain, and Nazli Mahdzir. “The Regulatory Framework Governing Traditional Arbitration in Resolving Islamic Banking Disputes in Malaysia: The Time for Change.” Jurnal Hukum Novelty 12, no. 2 (2021). https://doi.org/http://dx.doi.org/10.26555/novelty.v12i2.a20791. DOI: https://doi.org/10.26555/novelty.v12i2.a20791

Ferraro, Francesco. “Utility, Predictability, and Rights: Bentham’s Utilitarianism and Constitutional Entitlements.” Ratio Juris 35, no. 1 (2022): 38–54. https://doi.org/10.1111/raju.12335. DOI: https://doi.org/10.1111/raju.12335

Ferrucci, Edoardo, Roberto Guida, and Valentina Meliciani. “Financial Constraints and the Growth and Survival of Innovative Start-Ups: An Analysis of Italian Firms.” European Financial Management 27, no. 2 (2021): 364–86. https://doi.org/10.1111/eufm.12277. DOI: https://doi.org/10.1111/eufm.12277

Financial Services Authority. “Penyelenggara Fintech Lending Terdaftar Dan Berizin Di OJK Per November 2021,” 2021.

Haji Gholam Saryazdi, Ali, Ali Rajabzadeh Ghatari, Alinaghi Mashayekhi, and Alireza Hassanzadeh. “Designing a Qualitative System Dynamics Model of Crowdfunding by Document Model Building.” Qualitative Research in Financial Markets 12, no. 2 (2020): 197–224. https://doi.org/10.1108/QRFM-07-2018-0082. DOI: https://doi.org/10.1108/QRFM-07-2018-0082

Hamdani, Fathul, and Ana Fauzia. “The Urgency of Legal Protection for Online Loan Service Users.” Atlantis Press 592, no. Iclhr (2021): 215–21.

Hanifah, Rokhmatun, Gadang Prayoga, Ruhil Anadiah Sabrina, and Dona Budi Kharisma. “Tantangan Hukum Peer-to-Peer Lending Dalam Mendorong Pertumbuhan Industri Financial Technology.” Jurnal Penelitian Ilmu Hukum 16, no. 2 (2021): 195–205.

Haniff, Wan Amir Azlan Wan, Asma Hakimah Ab Halim, and Rahmah Ismail. “The Regulation of Equity Crowdfunding in United Kingdom and Malaysia: A Comparative Study.” Academic Journal of Interdisciplinary Studies 8, no. 3 (2019): 45–56. https://doi.org/10.36941/ajis-2019-0004. DOI: https://doi.org/10.36941/ajis-2019-0004

Hariyanto, Erie, Harisah, Hidayatullah, Moh Hamzah, Fatekhul Mujib, and Cut Linda Marheni. “In Search of Ummah Welfare Model: The Revitalisation of Sharia Economic Law in Indonesia.” Sriwijaya Law Review 7, no. 2 (2023): 244–61. https://doi.org/10.28946/slrev.Vol7.Iss2.1080.pp244-261. DOI: https://doi.org/10.28946/slrev.Vol7.Iss2.1080.pp244-261

Hutari Dwi Putri, Felia, and Novianita Sita Devi. “Analisa Penyalahgunaan Social Crowdfunding.” Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan 5, no. 5 (2022): 2391–95. https://doi.org/10.32670/fairvalue.v5i5.2390. DOI: https://doi.org/10.32670/fairvalue.v5i5.2390

Ivanov, Vladimir, and Anzhela Knyazeva. “U.S. Securities-Based Crowdfunding under Title III of the JOBS Act 1 Summary Below We Present Initial Evidence on the Offering Activity in the Title III Crowdfunding Market for Offerings Initiated During,” 2017, 1–27.

Jenik, Ivo, Lyman Timothy, and Alessandro Nava. “Crowdfunding and Financial Inclusion.” Cgap (Working Paper), no. March (2017): 1–48.

Johan, Suwinto, and Ariawan Ariawan. “Consumer Protection in Financial Institutions.” Legality : Jurnal Ilmiah Hukum 29, no. 2 (2021): 173–83. https://doi.org/10.22219/ljih.v29i2.16382. DOI: https://doi.org/10.22219/ljih.v29i2.16382

Johan, Suwinto, Ariawan, and Luo Yuan Yuan. “Insider Trading: Law of the Republic of Indonesia Number 8 of 1995 on Capital Market from Typewriters to Digital Era.” Jurnal Hukum Novelty 13, no. 1 (July 22, 2022): 13–25. https://doi.org/10.26555/NOVELTY.V13I1.A19101. DOI: https://doi.org/10.26555/novelty.v13i1.a19101

Kurniawan, I Gede Agus. “Digitalization of Business Law: Urgency and Orientation of the Industrial Revolution 4.0 and Society 5.0.” Volksgeist: Jurnal Ilmu Hukum Dan Konstitusi 5, no. 2 (December 20, 2022): 253–65. https://doi.org/10.24090/VOLKSGEIST.V5I2.6847. DOI: https://doi.org/10.24090/volksgeist.v5i2.6847

Lee, Seung Hun, Wafa Shafqat, and Hyun Chul Kim. “Backers Beware: Characteristics and Detection of Fraudulent Crowdfunding Campaigns.” Sensors 22, no. 19 (2022): 1–16. https://doi.org/10.3390/s22197677. DOI: https://doi.org/10.3390/s22197677

Liang, Ting Peng, Shelly Ping Ju Wu, and Chih chi Huang. “Why Funders Invest in Crowdfunding Projects: Role of Trust from the Dual-Process Perspective.” Information and Management 56, no. 1 (2019): 70–84. https://doi.org/10.1016/j.im.2018.07.002. DOI: https://doi.org/10.1016/j.im.2018.07.002

Lukk, Martin, Erik Schneiderhan, and Joanne Soares. “Worthy? Crowdfunding the Canadian Health Care and Education Sectors.” Canadian Review of Sociology 55, no. 3 (2018): 404–24. https://doi.org/10.1111/cars.12210. DOI: https://doi.org/10.1111/cars.12210

Madjid, Zahwa. “Pelaku UMKM Himpun Dana Rp 911 Miliar Lewat Securities Crowdfunding,” 2023.

Muryani, M A, N Rosyidah, M A Davin, and ... “The Role of Donation-Based Crowdfunding Platforms in Improving People’s Welfare (Study on the Kitabisa. Com).” JED (Jurnal Etika … 8, no. 3 (2023): 373–82. https://doi.org/10.26618/jed.v.

Nazmus Saadat, Md, Syed Abdul Halim, Husna Osman, Rasheed Mohammad Nassr, and Megat F. Zuhairi. “Blockchain Based Crowdfunding Systems.” Indonesian Journal of Electrical Engineering and Computer Science 15, no. 1 (2019): 409–13. https://doi.org/10.11591/ijeecs.v15.i1.pp409-413. DOI: https://doi.org/10.11591/ijeecs.v15.i1.pp409-413

Noor, Afif, Dwi Wulandari, Aqila-Syarief Muhammad Afif. “Regulating Fintech Lending in Indonesia: A Study of Regulation of Financial Services Authority No. 10/POJK.05/2022.” Qubahan Academic Journal 3, no. 4 (2023): 42–50. https://doi.org/10.48161/qaj.v3n4a156. DOI: https://doi.org/10.48161/qaj.v3n4a156

Noor, Afif. “Socio-Legal Research: Integration of Normative and Empirical Juridical Research in Legal Research.” Jurnal Ilmiah Dunia Hukum 7, no. 2 (2023): 94–112. https://doi.org/DOI: http://dx.doi.org/10.35973/jidh.v7i2.3154. DOI: https://doi.org/10.56444/jidh.v7i2.3154

———. “The Legal Regulatory Framework of Sharia Securities Crowdfunding in Indonesia.” Masalah-Masalah Hukum 51, no. 4 (2022): 433–44. https://doi.org/10.14710/mmh.51.4.2022.433-444. DOI: https://doi.org/10.14710/mmh.51.4.2022.433-444

Noor, Afif, Haniff Ahamat, Ismail Marzuki, Dwi Wulandari, Akhmad Arif Junaidi, Edy Lisdiyono, and Bakti Trisnawati. “Regulation and Consumer Protection of Fintech in Indonesia.” Linguistics and Culture Review 6, no. August 2021 (2021): 49–63. https://doi.org/10.21744/lingcure.v6ns3.1938. DOI: https://doi.org/10.21744/lingcure.v6nS3.1938

Othman, Rozita, Zuraidah Ali, Ibtisam @ Ilyana Ilias, and Azlena Khalid. “Overview of Community-Based Crowdfunding in Malaysia: Legal Issues and the Way Forward.” International Journal of Academic Research in Business and Social Sciences 11, no. 11 (2021). https://doi.org/10.6007/ijarbss/v11-i11/11306. DOI: https://doi.org/10.6007/IJARBSS/v11-i11/11306

Portuese, Aurelien, Orla Gough, and Joseph Tanega. “The Principle of Legal Certainty as a Principle of Economic Efficiency.” European Journal of Law and Economics 44, no. 1 (2017): 131–56. https://doi.org/10.1007/s10657-014-9435-2. DOI: https://doi.org/10.1007/s10657-014-9435-2

Prokofeva, Elena, Marina Chudinovskikh, Yulia Kuvaeva, Olesya Kononenko, and Nadezhda Boronenkova. “Crowdfunding Regulation Models: International and Russian Experience in Context of Sustainable Development.” E3S Web of Conferences 208 (2020). https://doi.org/10.1051/e3sconf/202020806009. DOI: https://doi.org/10.1051/e3sconf/202020806009

Radbruch, Gustav. “Law’s Image of the Human.” Oxford Journal of Legal Studies 40, no. 4 (2020): 667–81. https://doi.org/10.1093/ojls/gqaa026. DOI: https://doi.org/10.1093/ojls/gqaa026

Ramrattan, Lall, and Michael Szenberg. “Introduction and General Overview of Economic Happiness.” Fundamentals of Happiness, 2021, 1–16. https://doi.org/10.4337/9781839107733.00006. DOI: https://doi.org/10.4337/9781839107733.00006

Rijanto, Arief. “Donation-Based Crowdfunding as Corporate Social Responsibility Activities and Financing.” Journal of General Management 43, no. 2 (2018): 79–88. https://doi.org/10.1177/0306307017748125. DOI: https://doi.org/10.1177/0306307017748125

Riwanto, Agus, Sukarni Suryaningsih, and Delasari Krisda Putri. “Reform and Breakthrough in Business Regulations for Empowering MSMEs in Indonesia and the Netherlands.” Journal of Human Rights, Culture and Legal System 3, no. 3 (2023): 513–40. https://doi.org/10.53955/jhcls.v3i3.109. DOI: https://doi.org/10.53955/jhcls.v3i3.109

Rizky, Ichsan, and Rani Apriani. “Perbuatan Melawan Hukum Oleh Pihak Penyelenggara Pada Layanan Securities Crowdfunding Atas Risiko Kerugian Investasi Terhadap Pemodal Serta Perlindungan Hukumnya.” Jurnal HukumRespublica, 2020, 1–19.

Robock, Zachary. “The Risk of Money Laundering Through Crowdfunding: A Funding Portal’s Guide to Compliance and Crime Fighting.” Michigan Business & Entrepreneurial Law Review 4, no. 4.1 (2014): 113. https://doi.org/10.36639/mbelr.4.1.risk. DOI: https://doi.org/10.36639/mbelr.4.1.risk

Ryu, Sunghan, and Ayoung Suh. “Online Service or Virtual Community? Building Platform Loyalty in Reward-Based Crowdfunding.” Internet Research 31, no. 1 (2021): 315–40. https://doi.org/10.1108/INTR-06-2019-0256. DOI: https://doi.org/10.1108/INTR-06-2019-0256

Setya, Kartika Winkar, Abdul Aziz Nasihuddin, and Izawati Wook. “Fulfilling Communal Rights through the Implementation of the Second Principle of Pancasila towards the Regulation on Agrarian Reform.” Volksgeist: Jurnal Ilmu Hukum Dan Konstitusi 6, no. 1 (June 2023): 89–102. https://doi.org/10.24090/volksgeist.v6i1.7867. DOI: https://doi.org/10.24090/volksgeist.v6i1.7867

Skare, Marinko, Beata Gavurova, and Volodymyr Polishchuk. “A Decision-Making Support Model for Financing Start-up Projects by Venture Capital Funds on a Crowdfunding Platform.” Journal of Business Research 158 (2023): 113719. https://doi.org/https://doi.org/10.1016/j.jbusres.2023.113719. DOI: https://doi.org/10.1016/j.jbusres.2023.113719

Sriani, Endang, Farid Hasan, and Sukron Ma’mun. “Violation of Human Right for Collateral Fraud in Sharia Financial Institution Based on Fiduciary Guaranty Law and Rahn Law.” JURIS (Jurnal Ilmiah Syariah) 22, no. 1 (June 15, 2023): 133–43. https://doi.org/10.31958/JURIS.V22I1.9157. DOI: https://doi.org/10.31958/juris.v22i1.9157

Statista Research Department. “Market Size of the Donation-Based Crowdfunding Industry in Indonesia from 2013 to 2017,” 2023.

Syamsudin, M. “The Failure of the Court to Protect Consumers: A Review of Consumer Dispute Resolution in Indonesia.” Journal of Consumer Policy 44, no. 1 (2021): 117–30. https://doi.org/10.1007/s10603-020-09470-0. DOI: https://doi.org/10.1007/s10603-020-09470-0

Szabó, Roland Z.S., Réka Szász, and Borbála Szedmák. “Demand and Supply Sides of the Crowdfunding Ecosystem: The Case of Kickstarter Campaigns and Potential Hungarian Investors.” Society and Economy 43, no. 2 (2021): 65–183. https://doi.org/10.1556/204.2021.00008. DOI: https://doi.org/10.1556/204.2021.00008

Talukder, Saurav Chandra. “Exploring the Landscape of Social Entrepreneurship and Crowdfunding : A Bibliometric Analysis,” 2023, 1–22. DOI: https://doi.org/10.3390/su15129411

Wardah, Fathiyah. “PPATK: 176 Lembaga Filantropi Selewengkan Dana Donasi, Terutama Ke Pengurus Sendiri,” 2022.

Yudanti, Anggita, and Wicipto Setiadi. “Problematika Pembentukan Regulasi Indonesia Dalam Perencanaan Pembentukan Regulasi Dengan Perencanaan Pembangunan Daerah.” Volksgeist: Jurnal Ilmu Hukum Dan Konstitusi 5, no. 1 (2022): 27–40. https://doi.org/10.24090/volksgeist.v5i1.4973. DOI: https://doi.org/10.24090/volksgeist.v5i1.4973




How to Cite

Noor, A., Marzuki, I., Saputro, E., & Habib, M. A. (2023). Overcoming Regulatory Hurdles in the Indonesian Crowdfunding Landscape. Volksgeist: Jurnal Ilmu Hukum Dan Konstitusi, 6(2), 245–260. https://doi.org/10.24090/volksgeist.v6i2.9447