Effective oversight of Indonesia’s online lending industry requires more than just punitive measures for problematic lenders. Authorities must focus on proactively identifying issues before they escalate, safeguarding both lenders and consumers. Current approaches concentrating solely on sanctions are insufficient. Early detection systems are crucial for preventing financial harm and maintaining trust in the rapidly growing sector. Protecting consumer interests is paramount to sustainable growth within the online lending market. This includes ensuring fair lending practices and transparent dispute resolution processes. A balanced approach prioritizing prevention and protection will foster a healthier financial ecosystem.