Innovative Credit Scoring Regulation in Indonesia: too Little, too Late?

Taofik Hidajat () and Andy Ismail ()
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Taofik Hidajat: Universitas BPD
Andy Ismail: Darwan Ali University Sampit

A chapter in Proceedings of the 2nd International Conference on Business, Accounting, Banking, and Economics (ICBABE 2025), 2025, pp 26-37 from Springer

Abstract: Abstract Design/methodology/approach – This paper uses a qualitative approach by analyzing credit scoring regulations in Indonesia. Data sources are primary legal material in the form of statutory regulations and secondary legal material in the form of literature from scientific journal articles, books, and other sources related to credit scoring. Purpose – Innovative credit scoring is a solution for scoring potential borrowers who have no credit history. This paper examines the regulatory issue of innovative credit scoring because there are no regulations that specifically regulate this approach in Indonesia. Findings – There are no regulations that specifically regulate innovative credit scoring in Indonesia. Practical implications - This paper emphasizes the importance of special regulations for innovative credit scoring involving the banking industry, society, business actors, and innovative credit scoring actors. Originality/value – Discussions about innovative credit scoring are relevant today because approaches that use non-traditional data are interesting in credit scoring. This investigation helps illustrate attention to the importance of alternative credit scoring.

Keywords: innovative credit scoring; credit scoring; regulatory sandbox; self-regulation; machine learning (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-862-2_4

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DOI: 10.2991/978-94-6463-862-2_4

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