Does your jurisdiction regulate Fintech services under the traditional Financial Services laws or does it have any ad hoc regulatory frameworks for fintech services? (Financial Services Laws/Ad Hoc Framework/Hybrid)
Generally, financial technology (FinTech) companies in Indonesia are regulated and supervised by the Financial Service Authority (Otoritas Jasa Keuangan or ‚”OJK”) and Bank of Indonesia (“BI”). OJK is the authority that supervises the peer-to-peer (P2P) lending companies, while BI supervises the payment service providers and electronic money companies.
Indonesia follows a traditional legal framework when it comes to Financial Services, with authorized bodies such as the Government, OJK, BI, and Commodity Futures Trading Supervisory Agency (Badan Pengawas Perdagangan Berjangka Komoditi or “Bappepti”). These government agencies issue regulations, implement, and supervise for the respective fields that they supervise.
At the moment, the most significant legal development in Indonesia’s Fintech sector is the enactment of Law No. 4 of 2023 on Development and Strengthening of Financial Sector. This is an omnibus law of the financial service sector where one law amends up to 17 laws pertaining to the bank and financial services sector.
Make a list of fintech services that may obtain a licence in your jurisdiction?
There are 3 different authorities that supervise fintech activities, please find the list below of fintech activities and the authorities to issue the licenses for such certain activities:
What is(are) the name(s) of the regulatory authority(ies) responsible to grant licences and regulate fintech service providers? If there is more than one, please list which fintech services are regulated by which authority.
Please see our response to the question above.
Are there any specific restrictions on the types of fintech services that can be offered in and/or from your jurisdiction?
For the Payment Service Provider, BI (as the supervisory body for this type of fintech activities) prohibits any payment service provider from storing virtual currency together with fiat currency. Furthermore, P2P lending companies supervised by OJK cannot act as lenders and borrowers in their services. They are only allowed to become the providers for the lenders and borrowers. Additionally, BI prohibits any form of fintech company from utilizing a foreign currency within their services.
Is reverse solicitation allowed in your jurisdiction, for fintech firms licensed in other reputable jurisidictions? (Meaning that a third-country fintech firm can offer services to clients in your jurisdiction providing its at the exclusive initiative of the client).
Indonesian Law does not recognize Reverse Solicitation practice.
Are there any specific requirements for companies providing fintech services in your jurisdiction?
Fintech services operators must be registered to or licensed by the relevant authority (see our answers to question 2 above). As these fintech services operators utilize the electronic services, it is mandatory for them to conduct Electronic System Operator Registration.
Furthermore, P2P lending company must consider several requirements such as their foreign shareholder is permitted to hold not more than 85% of company’s capital and the minimum equity should be IDR 12.5 billion.
Are there any specific consumer protection measures that apply to fintech services in your jurisdiction?
Given a fintech service operator would control and process its consumers‚ data, it is necessary for any company (as the controller and processor of personal data) to comply with Law No. 27 of 2022 on Personal Data Protection. As this law stipulates the obligations of the controller and processor of personal data.
Furthermore, consumer protection in the financial services sector, including fintech, is governed under OJK Regulation No. 22 of 2023 on Consumer and Community Protection in the Financial Services Sector (“OJKR 22/2023”). This regulation harmonizes and consolidates previously fragmented rules into one comprehensive framework, covering principles of consumer protection, the conduct obligations of financial institutions, product and service design, disclosure of information, complaint handling, and dispute resolution. More importantly, it expands the scope of financial institutions subject to these rules by explicitly including and mentioning fintech providers such as P2P lending platforms.
Specifically, for fintech lending, OJKR 22/2023 sets clear requirements for debt collection practices, whether conducted directly by the fintech provider or through third-parties. Any third-party collector must be a licensed legal entity, employ certified personnel, and operate under a written agreement with the fintech provider. Debt collection must also comply with strict conduct standards: no threats or violence, no harassment of third parties, no excessive or continuous contact, and collections may only be conducted at the debtor’s address during permitted hours (Monday–Saturday, from 08:00–20:00).
Are there any other legal issues that companies should be aware of when providing fintech services in your jurisdiction?
A fintech service company needs to be aware of the regulations on Counter-Terrorism Financing (CTF) and Anti Money Laundering (AML) preventions, unfair commercial practices, personal data protection, consumer rights, and reporting obligations to the relevant authorities (i.e. OJK and BKPM)
Are virtual assets (such as cryptocurrencies and) permitted in your jurisdiction? (Yes/No)
Yes
If the answer is Yes, is there any licensing /authorisation/notification process that needs to be followed for a person to issue a new virtual asset? (Yes/No)
Yes
If the answer is Yes, please provide a summary of the process that needs to be followed by a person to issue a new virtual asset).
The stages for the issuance of a new virtual asset are as regulated under OJK Regulation No. 27 of 2024 on the Implementation of Digital Assets Trading Including Crypto (“OJKR 27/2024”). To issue a new virtual asset such as crypto, a Trader must first propose it to a registered and OJK authorized Exchange. The Exchange then conducts an analysis based on regulatory criteria and its own listing guidelines. If approved, the asset is added to the official Crypto Asset List (Daftar Aset Kripto) belonging to the Exchange.
Traders wishing to trade or stop trading of a virtual asset must notify OJK in advance within 7 (seven) days before commencing trading or 10 (ten) days in advance before stopping trading, and the Exchange is required to evaluate all listed assets regularly at least once every 3 (three) months. OJK also has the authority to review and, if necessary, order the removal or suspension of any crypto asset.
Are Virtual Asset service providers regulated in your jurisdiction? (Yes/No)
Yes
If the answer to your previous question is Yes, please provide a summary of the framework that regulates such service providers explaining which licence(s) need to be obtained from which authority(ies).
A crypto assets service provider is recognized as Digital Financial Asset Trader (“DFAT”). OJK is the only authority that issues the specific license for any DFAT. Prior to obtaining the license from OJK, the DFAT company must fulfill the several requirements, such as:
Once the DFAT has satisfied the above requirements, OJK would issue approval for the DFAT.
Are you as a firm providing services and advice relating to Virtual Assets? (Yes/No)
Yes
Please feel free to add any pertinent comments in addition to your answers.
N/A
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