While OJK encourages the productive growth of fintech lending, there are major concerns for misuse of the technology. With effect from 29 January 2021, the new regulation contains 108 pages concerning 9 important areas on anti-money laundering and terrorism financing
Financial Services Authority (OJK) plans to increase fintech lending for productive loans from 35.7% currently to ~60% of total loans disbursed by 2024. Consumer or personal loans currently dominate fintech lending, which have higher risk for bad debts. Productive loans
Bank Indonesia (BI) estimates that foreign capital flows of US$19.4 billion is expected, and is partially attributable to the implementation of Omnibus Law on Job Creation and the establishment of the Investment Management Institute. Perry Warjiyo, BI governor, shared that
Covid-19 has caused additional strain on Indonesia’s demographic bonus, with ~71% of the population within productive age (15-64), resulting in a high unemployment rate of 37.6%. Both the demographic bonus and the unemployment rate is expected to grow given current
The Minister of Finance, Sri Mulyani Indrawati, enacted a new regulation on distribution of funds in foreign currency for the procurement of Covid-19 vaccines. The regulation enables the government to pay directly in foreign exchange, with a direct payment mechanism
Financial Services Authority (OJK) shared that fintech P2P lending volume has reached IDR 155.9 trillion in 2020. OJK estimates that this will continue to grow and attract 8 million new borrowers this year. Unintended consequences of this success is the
Bank of Indonesia (BI) and Financial Services Authority (OJK) provide a regulatory sandbox for fintech startups. This is an incubation period to test the reliability of business innovations and to co-design regulation with plans to extend to health and ecommerce
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