The Jakarta Post
Despite lauding the financial authority’s effort to regulate the rapidly developing financial technology (fintech), fintech players see the regulation’s draft as inflexible in regards to accommodating the dynamic business.
Their concerns revolve around the capital requirement, financial reporting obligation and several other prohibitions.
The draft of the Financial Services Authority (OJK) regulation on fintech peer-to-peer (P2P) lending stipulates that a fintech company is required to have Rp 2 billion (US$148,445) in capital when it registers its business and increase the capital to Rp 5 billion when it applies for a business license. The funds must be kept in a time deposit account.
The proposed provision is understandable as the OJK wishes to use it as a measure to screen committed new fintech firms and differentiate them from uncommitted ones, Amartha Mikro ...