FinTech firms operating in Indonesia and running peer-to-peer lending businesses may face new regulations from the Indonesian Financial Services Authority (OJK).
According to a report in the Jakarta Post, Finextra confirmed, the OJK has introduced new rules that require these FinTechs to have a minimum of Rp1bn ($74,239) when registering with the agency as well as capital of Rp2.5bn in order to apply for a business license.
Muliaman D. Hadad, chair of OJK, explained that the capital requirements are significantly lower than what was stated in the draft regulation and intended to give the country’s new FinTech sector some supervision.
“What’s important is they get onto our radar because we don’t want to regulate the prudential aspects hastily. We want to provide [business] transparency guidelines first,” he stated an annual press briefing.
The OJK also launched a regulatory sandbox for FinTechs and other startups in the country, Finextra reported. The Bank of Indonesia will also make an effort to support FinTechs by launching its own FinTech office, which will be designed to help facilitate networking for startups in the FinTech sector.
It’s expected that additional regulation will be introduced for FinTechs in the country before the year end.