OJK issued the regulation as a legal standard to the financial technology industries.


The number of Indonesian people who use online transaction is increased, including in the financial sector. When they are shopping, they will prefer an e-commerce platform rather than having to go to a conventional store. Payment in the restaurant starts to use a card or application because it is considered more practical. Besides, vendors also usually give discounts to those who pay by card or smartphone application.

Online credit, although it was once considered untrustworthy, is now also being chosen by the people. Many companies also make applications and programs to manage individual and corporate finances, so that they can plan their finance well.

Hence, the government considers that the legal rules regarding digital financial innovation must be clarified and updated. The legal rules aim to secure the data of fintech organizers and the community and avoid high lending rate such as loan sharks.

Regulations regarding fintech in Indonesia have been made by the Indonesia Financial Service Authority (OJK / OJK), in 2016 through POJK No. 77 / POJK. 1 / 2016. However, the regulation only regulates peer-to-peer lending or technology provider systems to bring together borrowers and online lenders. The rapid development of fintech in Indonesia makes the government must control more aspects. That is the reason why the government updated the regulations on the fintech industry in Indonesia through POJK No. 13 / POJK.2 / 2018.



Aspects in the OJK Fintech Regulation 2018

This new OJK regulation regulates many things. First, it is about the steps that the fintech companies must follow in registering themselves to OJK. These companies must register their business with OJK, pass the regulatory sandbox process for approximately one year, then get certainty about their business status. OJK will provide one from three conditions: recommended, not recommended, or corrected. If the company already has a recommended status, then the company will be registered in the OJK.


Second, is the education aspect. OJK considers that knowledge about the correct fintech system is necessary so that people will understand the fintech work system. Business people must understand the fintech system excellently so that they can provide the best service. One way to educate many people about fintech is to open Infinity, a hub in Jakarta that serves as a place for discussion, education, and incubator.


Besides, there are also articles regarding customer data security and fintech business people. Legal standards to ensure data security is essential because we face a threat from the hackers. All fintech businesses that fund terrorism and involved in money laundering, both are also strongly prohibited in Indonesia.


With clear and complete legal standards related to fintech, consumers can use fintech services without worry and fear that their data will be misused. Business people will understand the references on how to run their business. The fintech industry will also be able to develop in the right direction and can meet the needs of the community. That is the goal of the OJK in tightening regulations regarding fintech in Indonesia.