Indonesia's Central Bank, Bank Indonesia ("BI"), recently issued new rules governing the financial technology ("FinTech") sector to support innovation while maintaining customer protection and financial stability. The new regime introduces a regulatory sandbox that allows FinTech start-ups to test new products under controlled BI supervision.
Against the backdrop of a rapidly evolving FinTech landscape, BI recently updated its regulations governing the sector. The regulation's primary development is the introduction of a regulatory 'sandbox', a controlled program to test innovative FinTech services under the supervision of BI ("sandbox"). This update discusses the key implications of BI's latest regulations, and highlights specific details of the Financial Services Authority’s ("OJK") rules concerning Peer-to-Peer lending service providers ("P2P Providers").
The Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal or "BKPM") recently updated its regulations to streamline procedural and licensing requirements for investment companies. On 4 December 2017, BKPM issued Regulation No. 13 of 2017 on Guidelines and Procedures for Investment Facilities and Licensing ("Regulation 13"). Regulation 13 is effective from 2 January 2018 for BKPM and 2 July 2018 for regional investment coordinating bodies. Changes include: (i) providing for simplified licensing requirements for non-Industrial / construction businesses; and (ii) introducing greater leniency for property development businesses.