Tag: investment

By: Yudistira Adipratama, S.H., LL.M.

Date: January 19, 2017


Pursuant to the newest regulation from Indonesian Financial Service Authority (“FSA”) No. 77/POJK.01/2016 dated 29th December 2016 on Lending Service Based on Technology System, there are several provisions which must be fulfilled to enable Fintech activity in Indonesia.
The scope of this regulation focused on Fintech platform with Peer to Peer Lending as its financial instrument, another financial instrument such as Balance Sheet Lending, and any other form are advised to be adjusted into Peer to Peer Lending.

Key updates to be concerned pursuant to the regulation are:

  1. Fintech company must be formed as an Indonesian legal entity (PT or Koperasi). The legal entity must employ one experienced employee that has minimum of 1 year working experience in financial service industry, as the member of its BoD and BoC
  2. Fintech company is not allowed to provide their own funds. The company is only allowed to provide Fintech online platforms, the online platform which connects both of investor and investee
  3. Fintech company is required to provide virtual account and escrow account
  4. Fintech company that has been conducting its activities before this regulation entry into force, must apply the registration to Indonesian FSA no later than 29th June 2017
  5. Fintech company is required to use data center and disaster recovery center located in Indonesia. Furthermore, Fintech company is also required to provide security system, and audit tracking system.
  6. Fintech company must conduct monthly and annual report to Indonesian FSA.

This new regulation must be complied by Fintech Company to conduct its business activity in Indonesia.
The revocation of the investment and fine penalty are the risks if such adjustments were not taken immediately.

Another regulation to be concerned due to the main operational of Fintech is BI Regulation No. 18/40/PBI/2016.



Mr. Yudistira
Business and Family Attorney

We are ready.
Chat with us
Free Consultation
Powered by