FINANCIAL INCLUSION, INTERNET ACCESS, AND ECONOMIC STABILITY: IMPLICATION FOR SECTOR P2P LENDING FINTECH IN INDONESIA

Abstract

This study aims to analyze the influence of financial inclusion, internet access, poverty level, unemployment rate, and inflation on the financing of peer to peer (P2P) lending financial technology (fintech) in Indonesia. This study uniquely integrates financial inclusion, internet access, and macroeconomic stability in analyzing fintech P2P lending in Indonesia. The research uses panel data from 34 provinces over the period 2019–2023. The analysis method employed is panel data regression with a random effects model approach. The results show that financial inclusion, internet access, poverty, and inflation significantly and has positive effect for increasing P2P lending fintech financing. In contrast, the unemployment variable does not have a significant and negative effect. Data on fintech financing and financial inclusion were obtained from the Financial Services Authority (OJK), while data on internet access, poverty, and unemployment were sourced from Statistics Indonesia (BPS), and inflation data were obtained from Bank Indonesia (BI). These findings highlight the importance of strengthening digital infrastructure and expanding financial access as strategies to broaden the reach of fintech services across Indonesia.