OJK Wil Launch POJK for Fintech at the End of March 2018

INDUSTRY.co.id - Jakarta - The Financial Services Authority (OJK) will issue rules on digital financial innovation aimed at technology-based financial companies (fintech) in the form of OJK Rules (POJK) by the end of March 2018.

Deputy Commissioner of the OJK Institute, Volunteers Batunanggar said the regulation would require all fintech associated with financial services and products to register with OJK and set up technology-based finance companies operating in Indonesia to be able to run their business more regularly and disciplined by carrying out the basic principles will be determined later.

"Later it regulates the overall principles of oversight and regulation of fintech Starting aspects of how to register, sandboxing, how these fintech are included in one area of ​​observation, we test, there will be a licensing aspect, covering reporting aspect, consumer protection, how OJK build a good ecosystem," he said in a working meeting of the Ministry of Commerce in Jakarta, Friday (2/2/2018).

He explains, later this rule will be different from the old financial services institutions such as banking and insurance. Later, the startup will be observed and tested whether the business model is sustainable, the technology is adequate or not, starting from the level of idea, design, prototyping. Once considered feasible, about a new year is released and licensed.

"It means that this startup will need to be confirmed viability and visibility of the project, not only from the business side but also the risk management and consumer protection, it is necessary to observe if the bank is established or the rules are standard, but for fintech, while he innovates, give space also for observation," he added.

This rule alone will only be the basis for these fintech companies. To be more specific, OJK will be reorganized by circular or in the form of guidelines.