OJK's fintech sandbox

Until very recently, the Financial Services Authority (OJK) only regulated peer-to-peer fintech lending platforms (P2P Firms). A recently issued OJK regulation (POJK 13/2018) increases its regulatory mandate over fintech firms in a bid to prevent financial sector stability, promote consumer protection, and improve non-competitive practices. POJK13/2018 is effective as of 16 September 2018.

On quick review, POJK 13/2018 is similar to Bank Indonesia regulation No. 19/12/PBI/2017 (PBI 19/2017), which was issued a year earlier. Both regulations aim to enhance and support the digital financial ecosystem that is currently flourishing. PBI 19/2017 more specifically covers the payment system for fintech that would affect monetary and financial stability, while POJK 13/2018 covers more generic digital financial innovation. There is still some uncertainly at this point on the practical implementation, in particular for areas such as market support, where the regulations overlap.

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