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Regulations and Requirements for Fintech Companies in Indonesia

Indonesia has established a regulatory framework to govern the fintech industry, promoting transparency, fairness, and stability. Here’s an overview of the key regulations and requirements:

Equity Crowdfunding

  • To operate in Indonesia, equity crowdfunding platforms must be registered as an Indonesian limited liability company or cooperative.
  • These platforms must obtain a license from the OJK (Otoritas Jasa Keuangan) to conduct business.

Invoice Trading

  • Currently, there are no specific regulations addressing invoice trading in Indonesia. This area of fintech remains largely unregulated.

Payment Services

  • Payment services are regulated by Bank Indonesia (BI), which oversees payment system activities.
  • Payment Service Providers (PSPs) can have up to 85% foreign ownership, but only 49% with voting rights.
  • Payment System Intermediary Providers (PSIPs) can have up to 20% foreign ownership, but only 20% with voting rights.

Open Banking

  • The Standardization of National Payment Systems Policy (SNAP) aims to standardize Open API Payment and ensure a level playing field among payment service providers.
  • This policy promotes interoperability and competition in the payment industry.

Insurance Products

  • Fintech companies selling or marketing insurance products must be regulated by the OJK, with specific rights reserved for licensed insurance companies.
  • These fintech companies must comply with relevant regulations to ensure consumer protection.

Credit References

  • Credit information services are restricted to licensed credit bureaus supervised by the OJK.
  • Only these licensed bureaus can issue credit reports, and they must obtain a business license from the OJK.
  • This regulation aims to maintain data accuracy and prevent unauthorized access to sensitive financial information.

By understanding these regulations, fintech companies in Indonesia can ensure compliance and contribute to the country’s economic growth.