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Jakarta Post

Dangers of under-regulating fintech industry

  • Alisha Sulisto

Jakarta   /   Thu, June 23 2016   /  07:24 am

Capitalizing on the back of Indonesia’s recent e-commerce boom and the steady increase of internet literacy, local entrepreneurs have begun to explore opportunities in which the internet can assist with Indonesia’s financial inclusion.

Despite only 25 percent of the population, 60 million Indonesians, having bank accounts, financial technology “fintech” startups have found a robust niche market to serve in the country.

An online portal called Cermati, for example, which finds and compares financial products in Indonesia, “aggregators”, has recently closed a seed funding round led by local venture capital firm East Ventures and Japan-based Beenos Plaza. Aside from Cermati, another aggregator called Cekaja is also making headway. Payment gateways are gaining traction in the fintech space as well, with Doku and Veritrans leading the way.

Granted, fintech ...