INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Monic N. Devina, D. Meitiara P. Bakrie and Ruth A. Mendrofa, ABNR Counsellors at Law
equity, (ii) funding, (iii) profitability, (iv) liquidity and (v) management aspects; • that all P2P lending companies, including those that obtained their business licences before OJK 40 comes into effect, shall achieve a minimum equity (total assets minus total liabilities) of IDR12.5 billion by 4 July 2025; • new mandates on implementation of anti- fraud strategy and the application of anti- money-laundering and prevention of terror - ism and proliferation of weapons of mass destruction funding programmes; and • that a P2P lending company which operates based on conventional principle may form a Sharia Business Unit ( Unit Usaha Syariah , or UUS) which operates based on Sharia princi - ple under its management. Nonetheless, OJK Reg, 40 still maintains some provisions from OJK Reg, 10, including: • that the minimum issued and paid-up capital of a P2P lending company remains IDR25 billion; • the responsibility for the controlling share - holding of a P2P lending company for any loss suffered by the company; • the requirement for foreign national direc - tors of a P2P lending company to be able to speak the Indonesian language; and • the requirement for all directors to be domi - ciled within the territory of Indonesia. The implementing regulations of OJK Reg, 10, including OJK Circular Letter No 19/ SEOJK.06/2023( “OJK CL 19” ) which was issued by the OJK on 8 November 2023, will remain in force, as long as they do not contradict OJK Reg, 40 and the OJK has yet to enact new imple - menting regulation. OJK CL 19 concerns, among other things, the maximum limit of economic
benefits that P2P lending companies can receive from their users, including the percentage of the interest rate or profit-sharing (for Sharia-compli - ant P2P lending companies). Law 4/2023 In addition, the government of Indonesia issued Law No 4 of 2023 on Development and Strength - ening of the Financial Sector ( “Law 4/2023” ) on 12 January 2023 as lastly amended by the Decision of Constitutional Court No 85/PUU- XXII/2024 dated 3 January 2025, which serves as an omnibus law for all legislation related to the financial sector in Indonesia. Under Law 4/2023, the government of Indonesia emphasises that all technological innovation in the financial sector (including financial technology) is subject to OJK and Bank Indonesia ( “BI” ) supervision. AI The OJK and several prominent fintech associa - tions in Indonesia are proactively anticipating the use of artificial intelligence (AI) in fintech prod - ucts and services by introducing the Code of Ethics Guidelines for Responsible and Trustwor - thy Artificial Intelligence in the Financial Technol - ogy Industry. These guidelines are designed to be a foundational reference for fintech associa - tions in Indonesia to assemble their own AI code of conduct in the future. The document incor - porates basic principles of AI utilisation, includ - ing beneficial use, fairness and accountability, transparency and explicability, as well as robust - ness and security. These principles are based on studies conducted on globally recognised AI frameworks, such as the OECD AI Principles and the National Institute of Standards and Technol - ogy AI Risk Management Framework.
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