INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Monic N. Devina, D. Meitiara P. Bakrie and Ruth A. Mendrofa, ABNR Counsellors at Law
selling and purchasing, leasing or providing por - nography that explicitly shows:
the prevailing regulation as well as to supervise the way fintech players conduct their business. The AFPI has issued a code of conduct that pre - vails for all P2P lending companies, while the AFTECH issued codes of conduct in November 2020 for three business clusters: aggregators, innovative credit scorers and financial planners. In addition to the associations, the public can also participate in the review of illegal fintech- provider activities by submitting a report to the EIFA Task Force. 2.13 Conjunction of Unregulated and Regulated Products and Services Financial products and services are highly regu - lated in Indonesia, in the sense that all financial products and services offered should be super - vised by either the OJK, Bappebti or BI. In the fintech sector, not all products and services are yet regulated. This is due to the rapid growth of innovation in digital financial services and because regulators are still playing catch-up with this development, particularly in formulating regulations that fit products and services offered by fintech players. The OJK and BI have attempted to address the situation by introducing a regulatory sandbox as a testing mechanism aimed at accommodat - ing all types of fintech products and services, while simultaneously assessing their “fit” with existing regulations; otherwise, new regulations would need to be prepared. This helps create a framework that accommodates innovation but also affords adequate protection to the public. For those parts of the fintech industry already regulated, such as P2P lending and securities crowdfunding, entities engaged in these sec - tors must be single-purpose companies, and will
• sexual intercourse; • sexual exploitation; • masturbation; • nudity or displays of exotic nudity; • sex organs; or • child pornography.
Implementation of Anti-money Laundering (AML) and Counter-terrorism Financing (CFT) OJK Regulation No 8 of 2023 on the Implemen - tation of AML, CFT, and Prevention of Prolifera - tion of Weapons of Mass Destruction Funding Programmes Within the Financial Services Sec - tor ( “OJK Reg, 8” ) applies to fintech providers that receive fees from customers in return for their services as P2P lenders and equity crowd - funding providers. These providers must have a policy, supervisory protocol and procedure to mitigate the risk of money laundering and financ - ing of terrorism related to their customers, and must report the implementation thereof to the OJK and suspicious transactions to the Finan - cial Transaction Reports and Analysis Centre (PPATK). 2.12 Review of Industry Participants by Parties Other than Regulators Business associations in fintech sectors play a significant role in overseeing fintech players. Cur - rently, two business associations are recognised by the OJK: the Indonesia FinTech Association (AFTECH) and the Perkumpulan Fintech Pen- danaan Bersama Indonesia (AFPI). Both asso - ciations have tried to supervise those aspects of fintech activities that are not yet stipulated in the regulation by issuing a code of conduct for each fintech sector. The OJK is also mandated to ensure the compliance of fintech players with
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