Indonesia’s ITSK Department to Oversee Fintech Businesses

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Jakarta, Indonesia - The Indonesian government has announced the establishment of the Information Technology and Security Committee (ITSK) as the main department responsible for overseeing fintech businesses operating in the country.

Regulation and Monitoring

According to sources, ITSK will be tasked with regulating and monitoring all fintech-related activities, including:

Payment systems
Digital currencies
E-commerce platforms

The committee will work closely with other government agencies, such as the Financial Services Authority (OJK) and the Central Bank of Indonesia, to ensure that fintech businesses comply with relevant regulations and laws.

Goals and Objectives

In a statement, an official from the Ministry of Communication and Information Technology said:

“The establishment of ITSK is aimed at promoting a safe and secure digital economy in Indonesia. We believe that this new committee will help to attract more foreign investment and talent to the country’s fintech sector.”

Responsibilities

ITSK is expected to issue regulations and guidelines for fintech businesses, including requirements for:

Anti-money laundering (AML)
Combating the financing of terrorism (CFT)

The committee will also work with international organizations, such as the Financial Action Task Force (FATF), to ensure that Indonesia’s fintech regulations are in line with global standards.

Impact on Fintech Industry

The establishment of ITSK is seen as a positive step for Indonesia’s fintech industry, which has been growing rapidly in recent years. According to reports, the country’s fintech market was worth around $10 billion in 2022 and is expected to reach $20 billion by 2025.

In related news, the Indonesian government has also announced plans to establish a new agency responsible for overseeing artificial intelligence (AI) and data protection in the country. The agency will be tasked with regulating AI-powered products and services, as well as protecting personal data and ensuring compliance with relevant regulations.

Conclusion

The establishment of ITSK and the planned AI agency are seen as part of Indonesia’s efforts to promote a digital economy and increase its global competitiveness in the fintech sector.