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Indonesia’s Digital Landscape Sees Regulatory Developments
The Indonesian government has been actively promoting the development of digital assets and financial services in the country. Recent regulatory developments have enabled the trading of digital gold, mutual funds, and digital banking services.
Trading of Digital Gold
According to a report by Ali Budiardjo Nugroho Reksodiputro Counsellors at Law (ABNR), the trading of digital gold was first legalized through Minister of Trade regulation No. 119 of 2019. The Indonesia Commodity and Futures Trading Regulatory Agency (Bappebti) has further regulated the trading process, requiring digital gold traders to fulfill certain requirements, including:
- Being a licensed futures exchange and clearing house member
- Fulfilling specific requirements for trading digital gold
The Bappebti regulation also allows for various types of digital gold transactions, including:
- Selling and/or purchasing
- Buying up to a specified amount of gold that can be printed for collection
- Fixed instalment with later delivery
- Deposit
- Printing
- Other transactions based on the needs and developments in digital gold trading
Digital Banking Guidelines
Meanwhile, the Indonesia Financial Services Authority (OJK) has issued guidelines for conducting digital banking by conventional banks. The guidelines allow banks to open digital branches where customers can perform self-service banking activities.
Personal Data Protection Bill
In addition, the Indonesian government has prepared a Personal Data Protection (PDP) Bill to be an underlying agreement for personal data protection. The bill is expected to shed light on personal data protection requirements that apply to all sectors.
The PDP Bill introduces:
- Classification of personal data into general and specific personal data
- Allows for personal data processing without obtaining consent from the data owner in certain circumstances
Industry Expert’s Perspective
Industry experts say that these regulatory developments are aimed at promoting the growth of digital assets and financial services in Indonesia, while also ensuring the protection of consumers’ interests.
“Fintech companies and banks are required to adapt to the changing landscape and provide better facilities to their customers,” said Freddy Karyadi, a partner at ABNR. “The regulations aim to strike a balance between promoting innovation and protecting consumer rights.”
About ABNR
ABNR is a leading law firm in Indonesia that provides comprehensive legal services to clients across various sectors. With offices in Jakarta and Bali, the firm has a team of experienced lawyers who are well-versed in Indonesian law and international best practices.
Contact: Freddy Karyadi Partner, ABNR Email: info@abnrlaw.com Tel: +852 3628 9000 www.abnrlaw.com