INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Monic N. Devina, D. Meitiara P. Bakrie and Nesya Ashari, ABNR Counsellors at Law
3.3 Issues Relating to Best Execution of Customer Trades For robo-adviser operators in stock trading, the actual trading of stocks should be carried out by securities companies. The robo-adviser platform should there - fore co-operate with a securities company instead of replacing it. This issue arises owing to the absence of regulations on robo-advisers in stock trading in Indo - nesia, which might otherwise differentiate between robo-adviser services and conventional existing ser - vices. 4. Online Lenders 4.1 Differences in the Business or Regulation of Fiat Currency Loans Provided to Different Entities OJK Reg 40 does not identify special treatment for individuals or small-business borrowers. OJK Reg 40 stipulates that Indonesian citizens, legal entities and business enterprises can all become borrowers in P2P lending. 4.2 Underwriting Processes P2P lending companies are required to mitigate risk in carrying out their business, pursuant to OJK Reg 40. Risk mitigation includes the activities of: • analysing funding risk; • verifying identity of users; • collecting funding; and • facilitating the transfer of risks. 4.3 Sources of Funds for Fiat Currency Loans For P2P lending, funds come from individual or insti - tutional investors. This is regulated under OJK Reg 40. Equity-based fundraising is covered separately in OJK Reg 17/2025. This does not involve lending, but allows companies to raise capital through equity, debt securi - ties, or sukuk . Deposit-taking is strictly regulated and reserved for commercial banks. This is regulated under the Bank - ing Law (Law 7 of 1992, as amended) OJK Regulation 12/POJK.03/2021 on Commercial Banks.
In principle, offering regulated products and services from another jurisdiction under a pure reverse-solic - itation scenario, where the Indonesian client inde - pendently initiates the engagement, may not trigger domestic licensing or approval requirements. How - ever, in practice, this is assessed on a case-by-case basis, with regulators focusing on whether there has been any active marketing, facilitation or indirect solic - itation within Indonesia that would trigger compliance with the domestic regulations in Indonesia. 3. Robo-Advisers 3.1 Requirement for Different Business Models Since Bappebti issued Regulation No 12 of 2022 on the Implementation of Delivery of Information Tech - nology-based Advice in the Form of Expert Advisers in the Commodity Futures Trading Sector (“Bappebti Reg, 12/2022”) on 2 September 2022, a party offer - ing and providing an IT-based advisory service in the form of an expert adviser in commodity futures trading must obtain the prior approval of the head of Bappebti to carry out activities as a futures adviser providing IT-based advisory services. In this way, Bappebti aims to eradicate fraudulent trading robots that were in the public spotlight in 2022. In different asset classes (for example, mutual funds), several mutual fund sales agents (APERDs) have used robo-advisory services when operating their business - es. Robo-advisory services in this asset class have not yet been regulated. However, based on the authors’ observation, APERDs that provide robo-advisory ser - vices have secured approval from the OJK as financial advisers. In theory, if a specific stipulation does not exist for a given asset class, a robo-adviser for that class may fall within the regulatory sandbox scheme, specifically the OJK scheme. 3.2 Legacy Players’ Implementation of Solutions Introduced by Robo-Advisers The implementation of solutions introduced by robo- advisers may vary, depending on the features pro - vided by the providers. However, this must adhere to the specific regulations, internal guidelines or rules that apply to those fintech providers.
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