Indonesia: Fintech regulation coming soon: OJK
The Financial Services Authority (OJK) is about to issue a new set of rules on financial technology (fintech), as more and more startups arise in the industry.
The OJK’s head of digital financial innovation and micro-finance development, Triyono, said the regulation was currently awaiting approval from the Law and Human Rights Ministry.
“We will begin disseminating information [on the regulation] during the inauguration of a fintech center [on] Aug. 16. Hopefully, [the regulation] can be issued soon,” Triyono said during a discussion on Sunday, as reported by kontan.co.id.
The new regulation would only pertain to the types of fintech that are under the OJK’s supervision, which include peer-to-peer (P2P) lending, insurance technology and equity crowdfunding. Fintech such as payment instruments are under the supervision of Bank Indonesia.
“Fintech is growing very fast; it’s impossible to make one [regulation for each type of fintech]. Therefore, to regulate [fintech], we’ve drafted a [regulatory umbrella] as a means of consumer protection,” Triyono said.
He added that the important issues in the regulation included the obligation for fintech companies to register with the OJK as well as an obligation to protect consumers and periodically provide insight into their financial reports.
According to data from the Indonesian Fintech Association (Aftech), there are currently 235 fintech companies joined in the association, an increase from 165 companies in 2016.
Sixty-four P2P lending companies have been registered with the OJK. As of June 2018, those 64 companies have distributed Rp 7 trillion (US$486 million) in funds year-to-date. (bbn)