“The aspiration [to register with the OJK] is high. Their market includes micro-small and medium enterprises that need funds to develop their businesses,” said OJK licensing and supervision director Hendrikus Passagi in Jakarta on Wednesday.

Hendrikus, however, stressed that the authority does not set a target for the number of P2P lenders that could obtain licenses because the quality of the lenders was the first consideration when issuing them.

He said P2P lenders could get licenses if they fulfilled three requirements. First, they should have secure technology that supports their operations. “The security, as well as the back-up and recovery systems should be in working order,” he said, adding that P2P lenders should also be registered with the Communications and Information Ministry.

Second, fintech companies should have a business model and risk management strategy in place that supports the good governance of their operations.

“A company has to have a standard operating procedure that covers the management of institutions and platforms,” Hendrikus said, adding it should also have a complaints center and facility to prevent money laundering and terrorism funding.

Third, a company should have capable human resources who know the differences between fintech lending in Indonesia and other countries, particularly knowledge about various regulations related to the operation of fintech lending in the country.

He added that a licensed P2P lender needed to have at least Rp 2.5 billion (US$175,756). (bbn)

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