Financial authority issues regulation on fintech lending
The Jakarta Post
The Financial Services Authority (OJK) has finally issued a regulation on financial technology (Fintech) firms that run peer-to-peer (P2P) lending businesses.
The regulation, POJK No. 77/2016, requires a fintech company to have Rp 1 billion (US$74,239) capital when it registers its business with the OJK and for this to rise to Rp 2.5 billion when it applies for a business license.
The figures are lower than the respective Rp 2 billion and Rp 5 billion stated in the draft regulation.
The regulation also does not strictly regulate maximum interest rates on loans. It only states that a fintech firm can advise its investors and customers of an interest rate by "taking into account fairness and national economic development".
OJK chair Muliaman D. Hadad admitted that the regulation was still an initial step made by the authority to regulate and supervise the business.
"What's important is they get onto our radar because we don't want to regulate the prudential aspects hastily," he said at the OJK's annual press briefing recently.
"We want to provide [business] transparency guidelines first."
The OJK also implements a regulatory sandbox, in which fintech firms can test any service they want to offer to consumers under the supervision of the authority before it issues further regulations. (bbn)
You might also like :
- Warding off Lembu Sora’s curse at Mt. Kelud crater
- Militants attack Iran army parade killing civilians: state media
- New bombshell revives debate on Trump fitness for office
- Truck full of bodies draws Mexicans searching for relatives
- Top Muhammadiyah figure resigns as Jokowi’s special envoy
- Trump outburst over Kavanaugh's female accuser sparks hashtag trend
- First to red planet will become Martians: Canada astronaut
- One year on, far right has transformed German politics
- Here are 10 of the most populated cities in the world
- China's bullet trains are coming for Hong Kong's airlines