The Positive and Negative Aspect of the Financial Technology Development in Indonesia Many Indonesians, especially those living in rural areas, remain unbanked or have yet to become part of financial inclusion. Being unbanked means not having access to financial products and services such as transactions, payments, savings accounts, credit and insurance. Data shows that unbanked citizens account for an estimated 66 percent of the country's 275 million population. Given the large number of people with no financial accounts, breakthrough efforts must aim for greater financial inclusion. It has been proven that financial inclusion can help the poor and most vulnerable in society break out of poverty, reduce inequality, develop entire communities and drive economicgrowth. One of the breakthrough ways is by utilizing financial technology (fintech) to expand financial inclusion to reach unbanked people, with a grassroots approach. Experts say fintech aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance. At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones. Indonesian technology company Grab, one of the biggest names looking to make a mark in the segment, is engaged in expanding financial inclusion by adopting a grassroots strategy. "When we expanded into the fintech space in 2017, we started by acquiring an online-to-offline business, Kudo or now known as GrabKios. At the beginning, we are focusing on empowering traditional mom-and-pops stalls or known as warung by enabling them to purchase the goods for their stalls via the app and also provide various digital products," says Grab Indonesia's financial technology strategy director, Anandhita Kasetra, "Our goal now is to empower our agent network to bring financial services to every Indonesian in every corner of the country. It's an exciting space with unexplored opportunities, especially since according to OJK [Financial Services Authority], 51 percent of the adult population in Indonesia does not have a financial account." Another popular form of fintech is peer-to-peer (P2P) lending which provide online loans and other banking services beyond the traditional banks. The P2P lending is currently growing rapidly and is easily accessible to people who are still difficult to get loan funds from traditional banks, and for MSME (micro, small, and medium enterprise) actors who need capital for business development. Not only MSME businessmen, there are also P2P lending that provide access to loans for those who need funds for education and health care with their respective standards, ranging from loan creditworthiness, loan nominal and tenor, interest rates, to security levels. As of October 2021, the total number of registered and licensed fintech operators is 106 companies. This figure is smaller than that in February 2020 which amounted to 161 companies. OJK actively canceled Registration Certificates for many P2P lending companies that violate regulations and are involved in illegal activities. OJK urges the public to always use fintech P2P lending services that have been registered/licensed from the OJK. The case of illegal online loans had received public attention several months ago. Presidenthad harmed and disturbed the public. Since January to November 2021, the Criminal Investigation Police along with 17 other Regional Police have handled 315 cases of illegal online loans (pinjol), most of which were based on information from the Investment Alert Task Force. This was stated by the Head of Sub-Directorate II of the Cyber Crime Investigation Unit of the National Police. Kombes Pol. Riski A. Prakoso in the OJK National Dialogue Webinar. Furthermore, Riski assessed that the increasing number of public participation in the fmancial market during the COVID-19 pandemic had created space for criminals to make fraudulent investments. \"So maybe a lot of people who are no longer working can take an alternative by borrowing through illegal lending. Not only are they stuck in the loan, but they also provide personal data that will be used by illegal loan service providers to be managed and shared with other companies," said Riski. According to him, most of the perpetrators of illegal lending request access to galleries, photos and contacts from borrowers who will be used to intimidate if there is a default. In addition, the hardware working system of this illegal loan is also said to use a sirn card that has been registered using someone else's NIK and KK illegally. Riski also said that in handling illegal loans, his party also had several obstacles, including the perpetrators using a remote system1 where the application adrnin or site manager and the owuer or other sections were not in the same loaation. In handling illegal loans, the Police DePartment also had several obstacles, including the perpetrators using a remote system. where the application admin or site manager and the owner or other sections were not in the same location