INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Monic N. Devina, D. Meitiara P. Bakrie and Ruth A. Mendrofa, ABNR Counsellors at Law
Lenders, particularly banks and multi-finance companies, may securitise their loan portfolios by issuing asset-backed securities (KIK-EBA). 4.4 Syndication of Fiat Currency Loans OJK Reg, 40 does not dictate a catch-all scheme for fintech lenders. However, a borrower that uses a P2P lending company’s platform may receive a loan from many lenders or from just one.
ried out both by banks and by non-bank entities. For licensing, only non-bank entities will need to obtain a remittance licence as a category-3 payment service provider from the BI before engaging in remittance activities. For banks, since remittance is one of their permitted activi - ties, no separate licence is required to provide this service. However, both banks and non-bank entities will need to comply with requirements to report to the BI on their remittance services. Cross-border remittance can only be done in co-operation with a provider that has obtained a remittance licence from the relevant author - ity in its home jurisdiction, and it must obtain BI approval. The BI is also authorised to stipu - late an upper limit for cross-border remittances. However, this will only apply to non-bank enti - ties. Banks and non-bank entities that provide cross- border remittance services also need to comply with the reporting requirements set out by the PPATK. 6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms Securities Trading The most common trading platforms in Indone - sia are those that relate to securities (including scripless stock and mutual funds) trading. These platforms must be operated by a licensed secu - rities broker and may only be used by custom - ers of that broker. Operation of such a trading platform is stipulated in OJK Regulation No 50/ POJK.04/2020 on Internal Control of Securities Companies that act as Securities Brokers, which allows a securities company to use electronic communication – including the internet, short
5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails
Payment processors may use existing payment rails or create/implement new ones if they have obtained the required licences from the BI as a payment system, payment system infrastructure or payment system-supporting service provider. If newly created payment rails do not fall com - pletely within the scope of existing payment sys - tem licences issued by the BI, the fintech recor - dation regime must accommodate them. As the activity relates to payment systems, fin - tech recordation should fall under the fintech regulation of the BI, and for such recordation, payment processors must lay out details of their new payment rails. The BI will then decide whether the new payment rails can be used in Indonesia until it issues a new regulation or poli - cy. Alternatively, it may require payment proces - sors to obtain a licence based on the existing regulations or order them to stop using the new payment rails. 5.2 Regulation of Cross-Border Payments and Remittances Cross-border payments and remittances fall within the supervision of the BI, and may be car -
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