INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Monic N. Devina, D. Meitiara P. Bakrie and Ruth A. Mendrofa, ABNR Counsellors at Law
2. Fintech Business Models and Regulation in General 2.1 Predominant Business Models There are a significant number of players in the Indonesian fintech lending sector. The OJK has recognised 97 P2P lending companies that obtained P2P lending business licences from the OJK. Nevertheless, at the time of writing (March 2025), P2P lending companies are outnumbered by fintech players in the payment systems sec - tor. It has been reported that 427 payment ser - vice providers have been licensed by the BI. 2.2 Regulatory Regime Indonesia’s fintech industry is supervised by two discrete regulators: the BI and the OJK. While the BI supervises fintech and payment systems (e-money, e-wallets and other unclassified pay - ment system fintech providers), the OJK super - vises non-payment fintech (P2P lending, equity crowdfunding and financial sector technology innovation (FSTI)). The regulations that serve as the main legal basis for the aforementioned fintech models are: • BI Regulation No 23/6/PBI/2021 on Payment System Providers ( “BI Reg, 23/6” ) • BI Regulation No 23/7/PBI/2021 on Payment System Infrastructure Providers; • BI Regulation No 22/23/PBI/2020 on Payment Systems; and • BI Regulation No 14/23/PBI/2012 on Fund Transfers as partially revoked by BI Reg, 23/6 (BI Reg, 14/2012) for Payment Service Providers; • OJK Reg, 40 for P2P Lending • OJK Regulation No 57/POJK.04/2020 on Securities Offerings via Information Technol - ogy-based Equity Crowdfunding Services as amended by OJK Regulation No 16/
POJK.04/2021( “OJK Reg, 57” ) for Equity Crowdfunding; • OJK Regulation No 3 of 2024 on the imple - mentation of FSTI ( “OJK Reg, 3” ), • OJK Regulation No 29 of 2024 on Alternative Credit Scoring; and • OJK Regulation No 27 of 2024 on the imple - mentation of Financial Digital Asset Trading Including Crypto Assets ( “OJK Reg, 27” ). 2.3 Compensation Models There are no specific requirements, and com - pensation depends on the contractual arrange - ments between fintech providers and their cus - tomers. 2.4 Variations Between the Regulation of Fintech and Legacy Players Banks, as traditional financial institutions, are subject to a robust regulatory regime designed to ensure financial stability and protect deposi - tors. This includes strict capital adequacy norms, liquidity requirements, and comprehensive risk management frameworks. While some fintechs, such as P2P lending, and payment system providers, must meet mini - mum capital and governance standards, oth - ers, like aggregators and funding or financing agents, face fewer financial requirements. Fin - techs supervised by the OJK (as opposed to those under BI supervision) are subject to con - sumer protection, anti-money laundering (AML), and governance requirements, including fit and proper tests where applicable (eg, P2P lending and digital banks). Meanwhile, BI-regulated fin - techs (such as payment system providers) are also subject to AML obligations under BI regu - lations. While fintech firms initially enjoyed a more leni - ent regime intended to spur innovation in the
333 CHAMBERS.COM
Powered by FlippingBook