International Journal of Management (IJM)

Volume 11, Issue 5, May 2020, pp. 751-763, Article ID: IJM_11_05_067
Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=5
Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.11.5.2020.067

© IAEME Publication Scopus Indexed

FACTORS AFFECTING INTENTION TO

INVESTING IN PEER-TO-PEER LENDING
PLATFORM TOWARD UNIVERSITAS
INDONESIA STUDENTS
Harry Sipangkar
Department of Business Administration, Faculty of Administrative Science,
Universitas Indonesia, Kampus UI, Depok 16424, Jawa Barat, Indonesia.

Chandra Wijaya*
Department of Business Administration, Faculty of Administrative Science,
Universitas Indonesia, Kampus UI, Depok 16424, Jawa Barat, Indonesia.
*Corresponding Author E-mail: wijaya@ui.ac.id

ABSTRACT
The purpose of this study is to determine the effect that is given - each factor on
initial trust and Perceived Risk then is associated again with investment intention. The
object in this study were 203 Universitas Indonesia undergraduate students
representing all 14 faculties and uses a questionnaire with a purposive sampling
technique in taking the necessary data. The factors in this study are divided into two of
them, individual factors such as risk appetite and trust propensity, and platform
factors such as perceived ease of use, perceived security, perceived reputation,
perceived legality institution, then the two factors mediated by initial trust and
perceived risk, and provides an explanation of the investment intention in P2P
lending. The results of this study are perceived reputation has a negative and
significant influence on perceived risk, perceived security has a positive and
significant effect on perceived security, then also has a positive and significant effect
on trust propensity, initial trust has a positive and significant effect on investment
intention.
Key words: P2P Lending, investment intention, perceived risk, initial trust
Cite this Article: Harry Sipangkar and Chandra Wijaya, Factors Affecting Intention
to Investing in Peer-To-Peer Lending Platform Toward Universitas Indonesia
Students. International Journal of Management, 11 (5), 2020, pp. 751-763.
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 Factors Affecting Intention to Investing in Peer-To-Peer Lending Platform Toward Universitas
Indonesia Students

1. INTRODUCTION
Peer-to-Peer Lending (P2P Lending) is a person-to-person online loan without the
involvement of financial institutions as intermediaries (Wei, 2015). P2P Lending is a
substitute for banks as a platform that can help the public to provide loans with many
conveniences such as no need for collateral in the loan process and interest that can compete
with conventional banks. P2P Lending is one of the fintech that is most in demand by the
Indonesian people.
According to data from the Indonesian Financial Services Authority (OJK), until June
2019 P2P Lending in Indonesia already disbursed loans of up to IDR 44.81 trillion, the loan
jumped nearly five times higher than in June 2018 when only IDR 7.63 trillion, and the
accumulated number P2P Lending borrowers in June 2019 totaled 11,415,849 borrowers.
While the accumulation of the number of borrowers per-June 2019 amounted to 518,640
funders, who last year amounted to 199,539 funders. From the number of lenders,
interestingly the number of lenders and borrowers is still very lame which means the P2P
Lending Aplatform in Indonesia still needs new investors to balance the demand for loans,
and also and the majority of lenders come from the age group of 19-34 years by 70%, which
means investors P2P Lending is a lot of young investors.
The funders of the 19-34 year old age group are students. Among students, investment
becomes something that is well known, can be seen with the existence of the Capital Market
Community and the Indonesia Stock Exchange Investment Gallery which is official from the
Indonesia Stock Exchange (IDX) on various campuses. With investment knowledge that has
started from investing in the capital market, there are already quite a lot of students who are
interested in trying to invest in P2P Lending. It can be seen from the OJK (Financial Services
Authority) data regarding the age group participating in P2P Lending, namely the age group
19 - 34 years, amounting to 70.03% of the total funding, this is because it is supported by
benefits and benefits suitable for young investors, from the easy conditions, the initial
investment that does not need to be too large, until the investment return is quite high.
Universitas Indonesia as one of the best university in Indonesia has introduced the world
of investment to its students to support the exposure of knowledge about investment among
students by creating three organizations, laboratories, even seminars and training about capital
markets in Faculty of Economic and Business, Faculty of Administrative Science and
Vocational Education Program, so that they can seen that enough learning about investment in
the Universitas Indonesia is incessant, but this is not supported by good financial literacy at
Universitas Indonesia students as evidenced by research conducted by Zanariasti (2017).
Sadiq, et al., (2018) said that financial literacy among young people had a significant positive
effect on long-term and short-term investment intention. So it can be said with the lack of
financial literacy at the Universitas Indonesia students that allows the lack of investment
intention. Investment intention in P2P Lending platform has several factors, namely :
individual factors and platform factors. Individual factors such as risk appetite, perceived ease
of use, perceived security, perceived reputation, and legality institution, and platform factors
such as initial trust and perceived risk. So, from the explanation above, the purpose of this
research is to analyze the effect of individual factors and platform factors on investment
intention of Universitas Indonesia students.

2. LITERATURE REVIEW
There is a lot of research on P2P lending, one of them focusing on the lenders’ investment
intention toward platform, which is quite essential for the development of P2P platform,
especially in the Indonesia market. This study refers to the research conducted by Li et al.,
(2016) entitled Understanding Investment Intention Towards P2P Lending: An Empirical

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 Harry Sipangkar and Chandra Wijaya

Study. The purpose of the study is to look for factors that influence the initial investment
intention of lenders on the P2P Lending platform. This study examines respondents who will
or who have already invested in P2P Lending. From investigate 216 prospective lenders of
P2P Lending, this research provides new ideas to study the relationship between perceived
risk and initial trust in the P2P Lending platform. This study has two types of factors, first,
individual factors, such as risk appetite, propensity to trust, and platform factors namely
perceived ease of use, perceived privacy protection, perceived security, perceived reputation,
and third-party certification. Second, platform factors, such as perceived risk and initial trust.
The results of this research show that factors that have a significant relationship are risk
appetite to perceived risk, trust propensity to initial trust, perceived ease of use to initial trust,
perceived security assurance to perceived risk, perceived privacy protection to perceived risk,
perceived privacy protection to initial trust, perceived reputation to perceived risk, perceived
reputation to initial trust, third-party certification to perceived risk, third-party certification to
initial trust, perceived risk to initial trust, perceived risk to initial investment intention, initial
trust to initial investment intention.
Then there are other studies made by Thaker et al., (2019) entitled Factors Affecting
Investment Intentions to Invest in A Peer-to-Peer Lending Platform in Malaysia: An Extended
Technology Acceptance Model. The purpose of this study is to examine the factors that
influence investors' intentions in Malaysia to invest in the P2P Lending platform. Where the
variables are risk, trust, ease of use, and security. The results of this study are only trust
factors that have a significant relationship with investor behavioral intentions to use P2P
Lending, and this result indicate that the intention of investors to invest through this
mechanism is influenced by the element of trust.

3. METHODOLOGY
The approach to this research is a quantitative approach. Quantitative research is a way of
gaining knowledge or problems where the data collected in the form of a series or collection
of numbers. According to Neuman (2014). Then in conducting data withdrawal the method
used is non-probability sampling using purposive sampling, which is used to identify certain
types of cases for in-depth investigations to gain a deeper understanding (Neuman, 2014), and
for data collection techniques used survey questionnaire with Likert scale 1 to 6, where the
number 1 indicates "strongly disagree" which is the lowest level and 6 is "strongly agree" as
the highest level. The respondents will fill out the questionnaire online / online through
Google Forms, and the distribution of the questionnaire is done by distributing the
questionnaire address link via social media (Line, WhatsApp, and Instagram) and there are 4
(four) fellow researchers as gate keepers who help researchers to spread the address
questionnaire link so that the questionnaire is spread evenly across each faculty, and also in
each of the existing forces and departments. The population used in this study were all
Universitas Indonesia students, while the sample was Universitas Indonesia’s Bachelor
Student who were familiar with the P2P Lending platform as an investment platform. The
target sample that researchers want is as many as 397 students out of 28,095 students who
obtained through the first calculation process using the Slovin formula. In this study there are
several stages to manage data, first by testing the quality of the data by using the reliability
and validity tests using the SPSS application, and analyzing the data with the Structural
Equation Model (SEM) using the AMOS application.
To achieve the purpose of research, a literature review was performed to identify variables
were examined in the research model of this. In this study there are nine variables : risk
appetite, perceived ease of use, perceived security, perceived reputation, and perceived
legality institution as an independent variable, then initial trust and perceived risks, as

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 Factors Affecting Intention to Investing in Peer-To-Peer Lending Platform Toward Universitas
Indonesia Students

intermediary variables, and investment intentions as dependent variables. So, to achieve the
research objectives, the following is the research model used:

Individual Factors

Risk Appetite H1

H2
Trust Propensity

Perceived Risk
Platform Factors H1
H12
H3
Perceived Ease to
Use H4
H11 Investment
Intention
H5
Perceived Security H6
H13
H7 Initial Trust
Perceived
Reputation H8

H9

Perceived Legality
H10
Institution

Figure 1 Research Model

There are thirteen hypotheses that can be drawn in this study. This research hypothesis is
as follows:
In general, society is divided into two types of risk preferences, namely, neutral risk and
risk rejection. Research on individual investments generally considers risk appetites that are
different from individuals. In the group of adherents to risk preferences, risk is considered as a
normal thing that can create opportunities. However, for the risk aversion group, arbitrary
decisions and taking risks are considered bad behavior to be avoided (Hanjun et al., 2004).
Havlena and DeSarbo (1991) show that people who have different attitudes towards risk will
have different feelings of risk. This different attitude towards risk creates a variety of user
risks. Thus, the following hypothesis can be established:
H1. Risk appetite is negatively related to perceived risk.
Individual trust is influenced by cultural background, personal characteristics and
experience development (Hofstede, 1980). trust propensity is a characteristic of individual
differences that refers to the general tendency for someone to trust others (Mayer et al., 1995).
The tendency of individuals to believe is very important in the early stages of establishing
rapport. McKnight et al., (2004) verify that the tendency to trust is one of the factors
influencing consumers' initial trust in the P2P Lending platform. For users who use P2P
Lending for the first time, the tendency of individuals to trust is important, because there is no
transaction experience. Therefore, the following hypothesis can be formulated:
H2. Trust propensity is positively related to initial trust
According to the Technology Acceptance Model (TAM) model explanation (Davis,
1989), ease of use is a measure of the difficulty of using a platform. The P2P Lending
platform needs to design its platform to look as comfortable as possible for users to make it
easier to find the information they need. Especially for first users who invest in P2P lending
platforms, ease of use can reduce their fear of difficulties and psychological burdens, which

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 Harry Sipangkar and Chandra Wijaya

supports trust in the P2P lending platform. Featherman & Pavlou (2003) prove that perceived
ease of use can reduce users' concerns about risk when they use e-commerce services.
Previous studies have shown that perceived ease of use is positively related to initial user trust
(Yang, 2005). Thus, the authors establish the following hypothesis:
H3. Perceived ease of use is negatively related to perceived risk.
H4. Perceived ease of use is positively related to initial trust.
When users feel that the platform is unable to ensure the security of their transactions and
personal data, they will assume that the website cannot be trusted (Urban et al., 2000). Unlike
the marketplace sites, P2P platforms must pay more attention to security, because the amount
that is traded on the P2P platform is almost always large. The P2P platform must effectively
inform consumers that this platform guarantees the security of transactions and personal data
with the best technology, so as to achieve consumer confidence (Urban et al., 2000). The
more advanced the technology, the smaller the risk. Therefore, security guarantees are
expected to contribute to risk reduction (Yoon, 2002). So, the authors hypothesize that:
H5. Perceived security is negatively related to perceived risk.
H6. Perceived security is positively related to initial trust.
A good reputation of a company is obtained and founded on the basis of long-term efforts
and accumulation. Therefore, consumers generally believe that companies will not destroy
their hard-earned reputation (Gotsi & Wilson, 2001). Mitchell and Boustani (1994) prove that
company reputation has an effect on reducing the risk of users in conventional business.
Reputation in the business world has been shown to significantly influence consumers' initial
trust (McKnight et al., 2002). Based on the above review, the authors hypothesize that:
H7. Perceived reputation is negatively related to perceived risk.
H8. Perceived reputation is positively related to initial trust.
A legality institution is an independent professional and authoritative institution, which
carries out multi-dimensional audits on the P2P Lending platform, assessing whether the
platform is reliable or not. P2P Lending platforms that are certified or permitted by legality
institution can meet the psychological needs of investors who avoid risk to some extent.
Previous studies found that certification from legality institution was an important factor in
influencing consumer confidence in e-commerce (Pavlou & Gefen, 2004). Based on the above
argument, the following hypothesis is derived:
H9. Legality institution are negatively related to perceived risk.
H10. Legality institution are positively related to initial trust.
Many researchers believe that trust contributes to reducing risk in online shopping
(Jarvenpaa et al., 1999), the relationship between trust and risk in the Chinese P2P lending
market conducted by researchers in reference journals may not be the case. Instead, they
believe that risks in the Chinese P2P Lending market will reduce user confidence. Because the
current P2P Lending market in China is not mature enough, and effective laws, regulations
and industry standards are not enough. Cases of financial fraud such as fraud and escape often
occur. Therefore, lenders or investors will feel a higher risk in the investment process in the
P2P lending platform. To guarantee investment security, trade risk is a factor that needs to be
considered by lenders in the process of forming trust. Lenders will build a good initial trust
with the platform when the risk is not too great. Therefore, the following hypothesis can be
established:
H11. perceived risk is negatively related to initial trust.
In this study, initial investment intention are extended from behavioral intentions in the
TAM Davis (1989) model. The researcher defines the initial investment intention as the

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 Factors Affecting Intention to Investing in Peer-To-Peer Lending Platform Toward Universitas
Indonesia Students

willingness to invest in lenders when they face the investment opportunities offered by the
P2P Lending platform for the first time. In general, if other factors remain unchanged,
decision makers will prefer programs with lower risk (Arrow, 1965). Pavlou (2003) found
that consumer risk in purchasing behavior is negatively related to purchase interest. Micthell
and Boustani (1994) emphasize the importance of risk in the search for external information
and the possibility of evaluating solutions. If the information collected by lenders cannot
reduce their risk, they will reduce their investment or not invest at all. Based on the above
understanding, the authors place the following hypothesis:
H12. Perceived risk is negatively related to investment intention
Gefen's research (2000) shows that trust can reduce the complexity of consumer decisions
in purchasing. Jarvenpaa et al., (1999) empirically study and reveal that trust is positively
related to buying attitudes. In the process of utilizing investment on P2P lending platforms,
lenders will believe that the platform can be trusted, and are willing to depend on this
platform to form positive investment intention when they see the platform's capabilities,
goodness, and honesty. So, the authors hypothesize that:
H13. Initial trust is positively related to investment intention.

4. RESULTS AND DISCUSSION

From the questionnaire distribution, 203 questionnaires were collected from 203
undergraduate and vocational program students in all faculties at the Universitas Indonesia.
So that it can be processed by researchers using the AMOS application as follows:

Table 1 Goodness of Fit

Recomended
Criteria Result Conclusion
Value
p-value 0.016 ≥ 0.05 Good
TLI 0.871 ≥ 0.90 Marginal
CMIN/DF 2.107 < 2.00 Marginal
GFI 0.770 ≥ 0.90 Marginal
AGFI 0.721 ≥ 0.90 Marginal
CFI 0.839 ≥ 0.90 Marginal
RMSEA 0.077 < 0.08 Good

Based on table 1, the goodness of fit index numbers meet the specified requirements. The
suitability indexes of the RMSEA model (0.077) are already included in the group that meets
the recommended value, while GFI (0.770), AGFI (0.720), TLI (0.871), CFI (0.839), and
CMIN/DF (2.107) are approaching recommended value, so that the entire index provides
enough confirmation to be able to proceed to the next test to be analyzed.

Table 2 Validity & Realibility

Factor Cronbach’s
Variable Indicator AVE
Loading α
1a 0.645
1b 0.586
Risk Appetite 0.617 0.56
1c 0.795
1d 0.810
2a 0.909
Trust Propensity 2b 0.874 0.807 0.723
2c 0.762
Perceived Ease to 3a 0.819 0.871 0.796

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 Harry Sipangkar and Chandra Wijaya

Use 3b 0.791
3c 0.780
4a 0.850
Perceived Security 4b 0.851 0.815 0.736
4c 0.871
5a 0.687
Perceived
5b 0.846 0.681 0.615
Reputation
5c 0.812
6a 0.852
Perceived Legality
6b 0.910 0.857 0.778
Institution
6c 0.883
7a 0.592
7b 0.784
7c 0.800
Perceived Risk 0.812 0.578
7d 0.693
7e 0.782
7f 0.680
8a 0.722
8b 0.795
Initial Trust 8c 0.876 0.864 0.655
8d 0.826
8e 0.821
9a 0.650
9b 0.700
investment intention 0.775 0.602
9c 0.876
9d 0.853

Based on Table 2, it can be seen that not all values of factor loading on each indicator
have met the required critical or value yaitu 0.50, among them are indicators 1b and 7a. So
indicators 1b and 7a must be issued to proceed to the next analysis, then it can also be seen
that the value of indicator reliability in this study meets the recommended limit. So, it can be
concluded that all indicators used are able to explain the variables formed.

Table 3 Hypothesis Testing Results

Direct Indirect Total

Variable P-value Information
Effect Effect Effect

RA (Risk Appetite)
Not
H1  – 0.010 – 0.010 0.961
Significant
PRS (Perceived Risk)
TP (Trust Propensity)
Not
H2  0.045 0.045 0.191
Significant
IT (Initial Trust)
PEU (Perceived Ease of Use)
Not
H3  0.096 0.096 0.301
Significant
PRS (Perceived Risk)
PEU (Perceived Ease of Use) 
H4 0.034 – 0.005 0.029 0.307 Not Signficant
IT (Initial Trust)
PS (Perceived Security)
H5  0.458 0.458 0.007 Significant
PRS (Perceived Risk)
PS (Perceived Security)
H6  0.361 – 0.027 0.334 0.000 Significant
IT (Initial Trust)
PR (Perceived Reputation)
H7 – 1.404 – 1.404 0.002 Significant


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 Factors Affecting Intention to Investing in Peer-To-Peer Lending Platform Toward Universitas
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PRS (Perceived Risk)

PR (Perceived Reputation)
Not
H8  0.093 0.084 0.177 0.667
Significant
IT (Initial Trust)
PLI (Perceived Legality Institution)
Not
H9  0.017 0.017 0.899
Significant
PRS (Perceived Risk)
PLI (Percevied Legality Institution)
Not
H10  0.082 – 0.001 0.081 0.120
Significant
IT (Initial Trust)
PRS (Perceived Risk)
Not
H11  – 0.060 – 0.060 0.223
Siginficant
IT (Initial Trust)
PRS (Perceived Risk)
Not
H12  – 0.104 – 0.063 – 0.197 0.088
Significant
II (investment intention)
IT (Initial Trust)
H13  1.063 1.063 0.000 Significant
II (Investment Intention)

From the above hypothesis testing it can be concluded that (see Table 3);
[H1] Risk appetite (RA) has a negative and not significant effect on perceived risk (PRS).
This proves that Universitas Indonesia students who have risk takers in investing will have a
perception or perceived risk that is small towards the P2P lending investment platform,
although not significant. In a previous study by Li et al., (2016) also states that the risk
appetite variable to perceived riskis one of the variables that has a negative value, where when
someone has a preference for risk then their perception of risk will decrease.
[H2] Trust propensity (TP) has a positive and not significant effect on initial trust (IT).
Where from the test and analysis can show that Universitas Indonesia students who have a
tendency to trust high enough to build their initial trust with a P2P lending platform better
though not significant. This is consistent with the results of previous studies by Li et al.,
(2016) which also states that trust propensity variable has a positive effect with initial trust,
and with other findings, by Kim and Prabhakar (2004) who find that trust propensity is one of
the predictors of initial trust in electronic-based services.
[H3 & H4] Perceived ease of use (PEU) has a positive and not significant effect on initial
trust (IT), then also has a positive and not significant effect on perceived risk (PRS). From the
test and analysis, it can be proven that Universitas Indonesia students consider the P2P
lending platform to be quite easy to use in investing, but with this convenience they assume
that there will still be risks even if it is not very meaningful. This can happen because the
more easy P2P lending is used and accessed by many people, it turns out that more NPL (non-
performing loans) or bad credit, then, Universitas Indonesia students consider that the ease of
using the P2P lending platform is a good intention platform for consumers to make it easier
usage, thus making them quite trusting in P2P lending. The perceived ease to use to initial
trust result has different result from previous studies conducted by Li et al., (2016) where they
states that perceived ease to use to initial trust has negative effect, while perceived ease of use
have a positive effect to initial trust similar to previous studies by Li et al., (2016).
[H5 & H6] Perceived security (PS) has a positive and significant influence on initial trust
(IT), then also has a positive and significant effect on perceived risk (PRS). From the test and
analysis it can be said that Universitas Indonesia students feel that overall P2P lending
provides a good platform security, however they perceive that there is still a significant risk of
security, because P2P lending is still considered new and does not have much experience and
in the future will more and more challenges and risks regarding investment security and data

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 Harry Sipangkar and Chandra Wijaya

privacy, then, Universitas Indonesia students already consider P2P lending to provide a fairly
good investment security, so that it greatly influences good initial trust in the P2P lending
platform. The perceived security to perceived risk result has different result from previous
studies conducted by Jiacheng Li et al., (2016) where they states that perceived security to
perceived risk has negative effect, while perceived security have a positive effect to initial
trust that similar to previous studies by Li et al., (2016).
[H7 & H8] Perceived reputation (PR) has a negative and significant influence on
perceived risk (PRS), then also has a positive and not significant effect on initial trust (IT).
From the test and analysis proves that Universitas Indonesia students consider the good
reputation of the P2P lending platform to be able to significantly reduce the perceived risk of
investing in the platform, then, Universitas Indonesia students tend to trust the P2P lending
platform that has a good reputation for investing. Both of these results are the same as the
results of a previous study conducted by Li et al., (2016) which states that perceived
reputation has a negative effect to perceived risk and perceived reputation has a negative
effect to perceived risk.
[H9 & H10] Perceived legality institution (PLI) has a positive and not significant effect on
initial trust (IT), then also has a positive and not significant effect on perceived risk (PRS).
From the test and analysis, Universitas Indonesia students only need to take into account the
certification of legality institution for P2P lending which has the certification given by
legality institution when they want to invest in the P2P lending platform, but they assume that
there will still be a risk even if it is not significant, then, Universitas Indonesia students
consider certification from legality institution to be taken into account in building initial trust
with a P2P lending platform to invest. The perceived legality institution to perceived risk
result has different result from previous studies conducted by Li et al., (2016) where they
states that perceived legality institution to perceived risk has negative effect, while perceived
ease of use have a positive effect to initial trust similar to previous studies by Li et al., (2016).
[H11] Perceived risk (PRS) has a negative and not significant effect on initial trust (IT).
This proves that Universitas Indonesia students who have a perception or perceived risk of
P2P lending can build their initial trust on the P2P lending platform, although not
significantly. The result are like those in previous studies conducted by Li et al., (2016) which
also states that the relationship between perceived risk and initial trust in P2P lending is a
negative relationship.
[H12] Perceived risk (PRS) has a negative and not significant effect on investment
intention (II). From the test and analysis above it can be proven that Universitas Indonesia
students tend to intend to invest in P2P lending platforms that have a perceived low
investment risk. The result have same result of a previous study by Li et al., (2016) which
also states that the relationship between perceived risk and investment intention in P2P
lending is a negative relationship.
[H13] Initial Trust (IT) has a positive and significant influence on investment intention
(II), showing that Universitas Indonesia students have the investment intention only in P2P
lending that they trust. In a previous study by Li et al., (2016) also states that the initial trust
has a positive relationship with investment intention.
From these results we can see the difference from previous research by Li et al., (2016)
where all factors have a significant relationship to the transition variable, and the transition
variable also has a significant relationship to investment intention. whereas in this study it
was found in Universitas Indonesia students that the variable that had a significant effect was
only perceived security to perceived risk, perceived reputation to perceived risk, perceived
security to initial trust, and initial trust as a transition variable to investment intention.

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 Factors Affecting Intention to Investing in Peer-To-Peer Lending Platform Toward Universitas
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5. CONCLUSION
From this study it can be seen that there are several significant factors at the Universitas
Indonesia students towards investing intentions in P2P Lending, there are perceived
reputation on perceived risk, perceived security on perceived security and trust propensity,
and initial trust on investment intention.
So, P2P lending platform needs to increase the ease of use of platforms both on websites
and applications. This can be done by providing a clear description of the flow or procedures
for use on the website or in the application. Not only the information, P2P lending needs to
ensure the user interface (UI) and user experience (UX) on their website or application is not
messy and confusing so that students can comfortably use it, then for P2P lending that does
not yet have an application for mobile phones, they should immediately launch it to make it
easier for students to access the P2P lending platform, because students do not really like
complicated processes.
P2P lending platform must continue to innovate and adopt advanced technology to ensure
the safety of investment funds and personal data of investors, not only does P2P lending
technology also need to clearly inform users about what their privacy information will be used
for, and not use their investors' personal data for other purposes. Because students currently
pay attention to the security of a platform before using it, especially in the security of data
privacy.
P2P lending platform must train their operators who deal directly with consumers in
providing professional and best services to potential investors and investors. P2P lending
should also be more aggressive in spreading service advantages compared to its competitors,
and P2P lending should use adverts that are enough to attract the attention of young people,
by first studying and finding out what is currently being liked and which is trending among
young people, especially students, so that will make P2P lending's reputation better.
P2P lending platform that does not yet have a certificate for a business permit must
immediately get it from the OJK if they want the platform to be looked at by students,
because students simply consider the permission granted by the OJK when choosing the P2P
lending platform to be used as an investment choice.
Although the P2P lending platform cannot change risk appetite and trust propensity in
students, P2P lending can promote their efforts to students or potential investors who have a
high risk appetite and tendency to trust as their main target, by highlighting high returns on
their ads for attract the attention of students with a high enough risk appetite, so that it can
reduce their perceived risk and can increase their initial confidence, so that investment
intention will rise. P2P lending also needs to do promotion by highlighting all the advantages
that exist to attract the attention of students with a trust propensity that is high enough.
And for further research on investment intention in P2P lending, it is better to expand the
object of the research more widely, such as between universities, or the general public and
also try to find out more about the indirect relationship (indirect effect) from the independent
variable to the dependent variable (investment intention).

ACKNOWLEDGEMENT
We thank Universitas Indonesia for providing financial assistance through the PITMA-B
Grant and the Research Cluster of Governance and Competitiveness, Faculty of
Administrative Science, Universitas Indonesia for providing supporting materials in regard to
discussions and assisting us in writing this manuscript.

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 Harry Sipangkar and Chandra Wijaya

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APPENDIX
Table 4. Variables and Indicators
Variables Indicators
An investment with high risk with a high return on investment is better
than an investment with a small risk with a small return on investment.
Risk Appetite Willing to use all the money for an investment that will be profitable
Accept any risk.
Courageous and quick in making investment decisions.
Easy to trust someone or something.
Trust Propensity Trust someone or something, even if you have little knowledge about it.
It's easy to rely on colleagues.
Easy to use an online platform.
Perceived Ease
Easily access and get the P2P Lending platform.
to Use
Easily skilled in using P2P Lending.
Perceived Maintain personal data properly.

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 Harry Sipangkar and Chandra Wijaya

Security Maintain investment funds properly.

Ability to resolve security issues on the platform.
The popularity of a platform influences user perceptions and views.
Perceived
The P2P Lending platform can provide benefits to the community.
Reputation
The P2P Lending platform is known as a good platform for investment.
Legal institutions have a good reputation for ensuring the trust of the P2P
Perceived
Lending platform.
Legality
Legal institutions carry out strict and good supervision.
Institution
legality institution are able to protect the interests of lenders (investors).
Investments through the P2P Lending platform may not get the expected
return (performance risk).
Investment through the P2P Lending platform will cause financial losses.
(Financial risk).
Investing in a P2P Lending platform will waste a lot of time. (Risk of
time).
Perceived Risk
Investment income does not match a person's self-image or self-concept.
(Psychological risk).
Investment through the P2P Lending platform will cause social losses.
(Social risk).
Investing through the P2P Lending platform will cause loss of privacy.
(Privacy risk).
The P2P Lending platform can be relied on to help investors in the
sustainability of their investments.
P2P Lending is the most reliable investment media.
Initial Trust The P2P Lending platform is a trusted place to invest.
The P2P Lending platform provides honest information to investors.
Dare to act to invest on investment opportunities that I get from the P2P
Lending platform.
Interested in investing in all P2P Lending platforms.
Investment Interested in investing only in certain P2P Lending platforms.
Intention It is likely to invest through this platform in the near future.
f the opportunity arises, I intend to invest through this platform.

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