New rules governing finance technology will be implemented in Indonesia by the end of the year.

The Indonesian Financial Services Authority (OJK) is preparing to launch new fintech legislation to help establish a healthy fintech ecosystem where start-ups can collaborate efficiently with traditional banks.

OJK Board of Commissioners chairman, Muliaman Hadad said the regulator is consulting with other major Asian fintech regions to formulate around the industry ecosystem at the regional level.

“We will start consulting our peers in China, Australia, Singapore and Malaysia,” he said.

Fintech start-ups in Indonesia do not currently fall under the purview of any single authority, with technology start-ups regulated by the communication ministry and financial services governed by the OJK. With the recent emergence of fintech companies and the potential for a coup of the traditional banking industry, experts and industry insiders across Indonesia have highlighted the importance for regulatory reform and control.

“Fintech has the opportunity to contribute to financial inclusion, which is a theme that has been discussed for years,” said Oliver Wysen Indonesia head, Jason Ekberg.

“Fintech is a new lever the government and regulators can use to further accelerate efforts.”

Indonesia will see $54 billion small and medium enterprises financing gap by 2020, with close to 60 million potentially bankable businesses, according to a recept Oliver Wyman and Modalku report.

Regulators in Indonesia are now set to follow in the footsteps of emerging markets like China, to seek out the strong coordination required across both the private and public sectors, to create the transformative industry it can be.