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Jakarta Post

Crowdfunding: Double-edged financial innovation

  • Ricky Pratomo
    Ricky Pratomo

    Legal analyst in an Indonesian legal media company

Jakarta   /   Wed, February 6, 2019   /  09:06 am
Crowdfunding: Double-edged financial innovation Crowdfunding (Shutterstock/File)

In recent years, the Indonesian public has been fed countless startup companies operating under the financial technology (fintech) umbrella. Although this presents opportunities to increase the financial inclusion rate, it turns out that many insincere startup companies have merely used such jargon as a marketing gimmick to induce hype from investors.

Despite such cynical statements, the fledgling fintech industry has been supported by the Financial Services Authority (OJK) through the introduction of equity crowdfunding based on OJK Regulation No. 37/2018. The framework was aimed at providing an alternative source of funding for startup companies besides the two-year old peer-to-peer (P2P) lending platform, so the OJK said.

The best and most concise way of describing equity crowdfunding is by picturing a public offer mechanism but for small-and-medium scale...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.