INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Monic N. Devina, D. Meitiara P. Bakrie and Nesya Ashari, ABNR Counsellors at Law
Lenders, particularly banks and multi-finance com - panies, may securitise their loan portfolios by issuing asset-backed securities (KIK-EBA). 4.4 Syndication of Fiat Currency Loans OJK Reg 40 does not dictate a catch-all scheme for fintech lenders. However, a borrower that uses a P2P lending company’s platform may receive a loan from many lenders or from just one. 5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails Payment processors may use existing payment rails or create/implement new ones if they have obtained the required licences from the BI as a payment system, payment system infrastructure or payment system- supporting service provider. If newly created payment rails do not fall completely within the scope of existing payment system licences issued by the BI, the fintech recordation regime must accommodate them. As the activity relates to payment systems, fintech recordation should fall under the fintech regulation of the BI, and for that recordation, payment processors must lay out details of their new payment rails. The BI will then decide whether the new payment rails can be used in Indonesia until it issues a new regulation or policy. Alternatively, it may require payment proces - sors to obtain a licence based on the existing regula - tions or order them to stop using the new payment rails. 5.2 Regulation of Cross-Border Payments and Remittances Cross-border payments and remittances fall within the supervision of the BI and may be carried out both by banks and by non-bank entities. For licensing, only non-bank entities will need to obtain a remittance licence as a bundled activity category-3 payment ser - vice provider from the BI before engaging in remittance activities. For banks, since remittance is one of their permitted activities, no separate licence is required to provide this service. However, both banks and non- bank entities will need to comply with requirements to report to the BI on their remittance services.
Cross-border remittance can only be done in co-oper - ation with a provider that has obtained a remittance licence from the relevant authority in its home jurisdic - tion, and it must obtain BI prior approval. The BI is also authorised to stipulate an upper limit for cross-border remittances. However, this will only apply to non-bank entities. Banks and non-bank entities that provide cross-bor - der remittance services also need to comply with the reporting requirements set out by the Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK), the govern - ment agency in Indonesia responsible for financial intelligence. 6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms The most common trading platforms in Indonesia are those that relate to securities (including scripless stock and mutual funds) trading. These platforms must be operated by a licensed securities broker and may only be used by customers of that broker. Opera - tion of such a trading platform is stipulated in OJK Regulation No 50/POJK.04/2020 on Internal Control of Securities Companies that act as Securities Bro - kers, which allows a securities company to use elec - tronic communication – including the internet, short- messaging services, wireless application protocols and other electronic media – to facilitate its securities transactions. In addition to the trading feature, the platform must also provide information on: • trading risk; • the security and confidentiality of all data; • how an order will be processed by the broker; and • procedures for handling order delays or instruc - tions for addressing disruption to the system. In marketing securities, the securities broker can also engage another bank or non-bank financial institu - tion (including a crowdfunding organiser) or a peer-to- peer lender to act as its marketing partner. The partner
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