OJK plans to roll out new regulations governing fintech peer-to-peer lending activities in order to strengthen the sector’s operations, and increase consumer protection. The changes in the regulation covers ownership of the fintech lender, funding limits, equity and capital requirements,
OJK requires the banking industry to implement a climate-resistance risk management strategy. This regulation requirement is part of OJK’s commitment to a sustainable economy, and to encourage capital flow to sustainable public investment, private investment, infrastructure development, human resource development.
OJK will be announcing the core capital requirements for digital banks, and explicit regulations concerning the incorporation of digital banks. The blanket capital requirements for fully digital banks is at IDR 10 trillion, or US$ ~700 million. This requirement is
With effect from 1 May 2021, the government mandates supermarkets and shopping centres to provide up to 30% of its retail space for MSMEs. This is an increase from the previous mandate of 20%. The management of shopping centers are
Following the Presidential Regulation No.10 of 2021, the Indonesian government now considers the ‘Ínvestment Business Sector’ as a Priority Business field to accelerate investments and job creation. The key eligibility criteria is based on alignment with national strategic programs and
The policies address critical enablers of the financial services ecosystem. These policies cover regulatory sandboxes to enable business model innovation, expanding regulatory scope to include digital financial systems between different parties, e.g: API applications., strengthening human source and research capabilities.
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
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