INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Monic N. Devina, D. Meitiara P. Bakrie and Ruth A. Mendrofa, ABNR Counsellors at Law
As discussed in 2.2 Regulatory Regime , while the OJK and BI both have regulatory and super - visory roles in the financial services sectors, their authorities differ. The BI is responsible for formulating and implementing monetary policies (including those related to exchange rate stabil - ity and inflation), maintaining the stability of the payments system, and regulating the stability of the financial system by supervising macro-eco - nomic conditions and enacting macroprudential policy to prevent financial crises. On the other hand, the OJK oversees the banking and non- banking industry (including ensuring compliance with regulations through licensing and reporting obligations) and protects consumers within the Pursuant to OJK Regulation No 31 of 2024 on Written Orders ( “OJK Reg, 31” ), the OJK is authorised to issue a written order to financial services institutions and/or certain parties to implement, or not, certain activities. The pur - pose of this issuance is to ensure compliance with the laws and regulations in the financial services sector and/or to minimise or prevent losses to consumers, the public and the financial services system. financial services sectors. 2.7 No-Action Letters The written orders can be issued to both finan - cial services institutions and/or certain other par - ties, such as: • the shareholders, board of directors, and board of commissioners of the financial ser - vices institution; • parties that have affiliation with the institution; • other financial services actors; and • issuers or public companies. OJK Reg, 31 does not explicitly define the scope of the written order, therefore it is possible to
include “no-action” letters within the scope since OJK is also authorised to issue any legal product on a discretionary basis. 2.8 Outsourcing of Regulated Functions OJK Reg, 40 allows P2P lending companies to outsource certain work to third parties by vir - tue of an outsourcing agreement, provided that the work is not related to a funding feasibility assessment; also, information technology oper - ating, specifically regarding the user manage - ment activities and database management, can - not be outsourced. Nevertheless, outsourcing of information tech - nology-related tasks is permissible when it involves the development of information tech - nology and meets the following requirements: • the P2P lending company owns the digital application’s source code and access to the production server; • information technology development is car - ried out on behalf of the P2P lending com - pany; and • information technology development is not conducted during the deployment and pro - duction maintenance stages. The eligible vendor for outsourcing must fulfil the following requirements: • the vendor is in the form of a legal entity in Indonesia; • the vendor is a registered member in asso - ciations of similar companies recognised in Indonesia or internationally; • it does not affect the reputation of the P2P lending company who outsources the work; and
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