INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Monic N. Devina, D. Meitiara P. Bakrie and Ruth A. Mendrofa, ABNR Counsellors at Law
advisory service in the form of an expert adviser in commodity futures trading must obtain the prior approval of the head of Bappebti to carry out activities as a futures adviser providing IT- based advisory services. This way, Bappebti aims to eradicate fraudulent trading robots that were in the public spotlight in 2022. In different asset classes (for example, mutual funds), several mutual fund sales agents (APER - Ds) have used robo-advisory services when operating their businesses. Robo-advisory ser - vices in this asset class have not yet been regu - lated. However, based on the authors’ obser - vation, APERDs that provide robo-advisory services have secured approval from the OJK as financial advisers. In theory, if a specific stipu - lation does not exist for a given asset class, a robo-adviser for that class may fall within the regulatory sandbox scheme, specifically the OJK scheme. 3.2 Legacy Players’ Implementation of Solutions Introduced by Robo-Advisers The implementation of solutions introduced by robo-advisers may vary, depending on the fea - tures provided by the providers. However, this must adhere to specific regulations, internal guidelines or rules that apply to those fintech providers. 3.3 Issues Relating to Best Execution of Customer Trades For robo-adviser operators in stock trading, the actual trading of stocks should be carried out by securities companies. The robo-adviser plat - form should therefore co-operate with a securi - ties company instead of replacing it. This issue arises owing to the absence of regulations on robo-advisers in stock trading in Indonesia, which might otherwise differentiate between
robo-adviser services and conventional existing services.
4. Online Lenders 4.1 Differences in the Business or Regulation of Fiat Currency Loans Provided to Different Entities
OJK Reg, 40 does not identify special treatment for individuals or small-business borrowers. OJK Reg, 40 stipulates that Indonesian citizens, legal entities and business enterprises can all become borrowers in P2P lending. 4.2 Underwriting Processes P2P lending companies are required to mitigate risk in carrying out their business, pursuant to OJK Reg, 40. Risk mitigation includes the activi - ties of: • analysing funding risk; • verifying identity of users; • collecting funding; and • facilitating the transfer of risks. 4.3 Sources of Funds for Fiat Currency Loans For P2P lending, funds come from individual or institutional investors. This is regulated under OJK Reg, 40. Equity-based fundraising is covered separately in OJK Reg, 57. This does not involve lending but allows companies to raise capital through equity, debt securities, or sukuk. Deposit-taking is strictly regulated and reserved for commercial banks. This is regulated under the Banking Law (Law 7 of 1992, as amended) OJK Regulation 12/POJK.03/2021 on Commer - cial Banks.
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