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Question & Answer

What kinds of business entities are allowed to provide financial-based lending and borrowing services (fin-tech)?


In Indonesia, the provision of information technology-based lending or borrowing service known as financial technology (fin-tech) is regulated in Article 1 paragraph (6) of Regulation of the Financial Services Authority Number 77/ PoJK.01 / 2016 concerning Information Technology-Based Money Lending and Borrowing Service (“POJK No. 77/2016”). The regulation contains an explanation that fin-tech providers include Indonesian legal entities that provide, administer and operate information technology-based money lending and borrowing services.

Article 2 of POJK No. 77/2016 provides that fin-tech operators are considered as other financial services institutions as stipulated in Law Number 21 of 2011 concerning the Financial Services Authority and the legal entities providing fin-tech services shall be limited liability companies or cooperatives.

Please note that if the fin-tech operator is a foreign citizen and a foreign legal entity, the share ownership, directly or indirectly, is limited to a maximum of 85% (eighty five percent). (EDN)

What is the legal status of peer to peer lending or fin-tech operator that has engaged in business activities prior to the coming into force of Regulation of the financial Services Authority Number 77 / POJK.01 / 2016 concerning Information Technology-based Money Lending and borrowing Services (“POJK No. 77/2016”) which was promulgated on december 29, 2016? what about the license?


Fin-tech operators are parts of other financial services agencies overseen by the FSA. Therefore, in carrying out its business activities, a fin-tech operator must first apply for registration with the FSA.

Fin-tech operators having conducted business activities before the introduction of POJK No. 77/2016 are obliged to apply for registration with the FSA no later than 6 (six) months

after POJK No.77 / 2016 takes effect. The application for registration by the operator shall be submitted by the Director to the Chief Executive of Supervision of Insurance, Pension Funds, Financing Institutions and Other Financial Services Institutions by using Form 1 as set forth in the Appendices of POJK No.77 / 2016 by supplying the required documents as provided for in Article 8 paragraph (3) of POJK no. 77/2016.

After the application for registration has been recorded, the operator registered with the FSA, within a maximum period of 1 (one) year from the date of registration with the FSA, shall apply for a license as an operator through its director to the Chief Executive of the Supervision of Insurance, Pension Fund, Financing Institution, and Other Financial Services Institutions using Form 2 listed in the Appendices attachment which is an integral part of POJK. 77/2016 by supplying the documents required under POJK No.77 / 2016. (