Indonesia ready to launch fintech regulation


The Financial Services Authority is set to release fintech regulation on security issues within digital payments, crowdfunding, marketplace lending and insurance by the end of the year.

The Jakarta-based Financial Services Authority (OJK) plan to issue regulation on fintech practices by the end of this year, with the aim of helping the country to navigate foreign fintech players in the marketplace and build Indonesia’s innovative stance.

After the regulation is issued, fintech players will be given 12 months to comply with its restrictions, which are to include legislation on the following:


Fintech area Proposed legislative focus points
  • disclosure
  • data security
  • debt
  • angel investments
  • personal data security
  • compliance with pre-existing law
  • tax 
Digital currency & related services
  • product offerings
  • safety of digital deposits
Fintech advisers
  • agents & brokers
  • product marketing
  • referrals
  • product independence
Marketplace lending
  • supervision of disclosure
  • debtors
Digital payments
  • compliance with e-money laws
  • personal data security
  • Cybersecurity risks


OJK finance supervisor, Aloysius Saragih, said that the legislation needed to be multi-faceated, with the Indonesian market proving difficult to regulate, due to the large rate of financial illiteracy in the country. Over 50 per cent of citizens are without a bank account, while many remain unaware of basic banking.

“The plan is to form regulation that will take care of the industry in a balanced manner,” Saragih said.

“We don’t want to regulate it too tightly because then it will pose unnecessary obstacles for growth. We also don’t want to regulate too loosely because it can compromise consumer protection.”

The OJK will meet with the Indonesian Financial Technology Association (IFTA) next month to finalise areas for regulation.