INDONESIA Trends and Developments Contributed by: Vik Tang, Michelle Virgiany, Novita Wulandari and Fransiska Larasati, Hiswara Bunjamin & Tandjung
vices ( Layanan Pembiayaan Digital ), which are defined as “services provided by multi-finance companies by utilising electronic systems to give borrowers access to financing facilities and/or services from partners of the multi-finance com - panies, and can be carried out independently by the debtors and/or prospective debtors” . Nota - ble provisions on Digital Financing Services are as follows. • No physical face-to-face interaction: Digital Financing Services through working capital and multipurpose financing can be carried out without physical face-to-face interaction, sub - ject to approval from OJK. The example given in the regulation for this is a BNPL product. • Electronic system used: the electronic systems used in providing Digital Financing Services must be owned, in the possession of and controlled by the financing company. This requirement will come into effect on 31 December 2025. • Co-operation with other parties: multi-finance companies may co-operate with another party in carrying out Digital Financing Servic - es, and this proposed co-operation must be included in the business plan. The example given in the regulation is co-operation with e-commerce companies. • Electronic agreements: financing agree - ments in electronic document form for Digital Financing Services without physical face-to- face interaction must use an electronic sig - nature secured with an electronic certificate in accordance with applicable regulations (ie, certified electronic signature provider regis - tered with the Ministry of Communications and Digital Affairs (MOCD)). Considering the recent enactment of these Dig - ital Financing Services provisions, the authors are monitoring how they are implemented in
practice and, in particular, how the relevant regu - latory requirements interact with the upcoming development of BNPL products in the industry. OJK has also indicated that it will issue further regulations on BNPL. Alternative Credit Scoring Passed OJK Sandbox After concluding its assessment of the alterna - tive credit scoring business model under the sandbox regime in 2024, OJK has issued a new regulation on the licensing of alternative credit scoring providers ( “ACS Providers” ), namely OJK Regulation No 29 of 2024, which took effect on 20 December 2024 ( “OJK Regulation 29” ). The key points to note in OJK Regulation 29 are as follows. • Paid-up capital: ACS Providers must be lim - ited liability companies with minimum paid-up capital of IDR5 billion (circa USD303,000). The funds for the capital injection must not be sourced from loans (as is the case in most other parts of the financial services sector). • Foreign ownership: the maximum (direct and indirect) foreign ownership limit in ACS Pro - viders is 85%, but this limit does not apply to publicly listed ACS Providers. • Licensing and fit-and-proper test: ACS Pro - viders must obtain a licence from OJK and register as electronic system operators with the MOCD. In addition, the “main parties” ( pihak utama ) of ACS Providers – ie, parties that own, manage, supervise and/or have sig - nificant influence over ACS Providers – must also pass OJK’s fit-and-proper test. • Data centres, disaster recovery centres and electronic systems: ACS Providers must place their data centres and disaster recovery centres in a separate location in Indonesia. The new regulation expressly allows ACS Pro -
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