TEMPO.CO, Jakarta - Bank Indonesia (BI) has launched a new regulation on financial technology (fintech). The regulation covers a requirement for fintech companies to register with the central bank and a ban on the use of digital currencies, among others.
“We want to strike a balance; to continue fintech development while avoiding any disruption on the economy,” BI Deputy Governor Sugeng said yesterday, Dec. 7.
The regulation is set to go into effect on January 1, 2018, or one month after being signed on November 30. Bank Indonesia also issued regulations of members of BI Board of Governors No. 19/14 and 19/15.
Sugeng said that the regulations cover fintech criteria which include innovation, impact on the existing business model, effects on the wider public, scalability and usability.
Other aspects being regulated are a requirement for fintech companies to register with Bank Indonesia. Those who have already secured a permit from the central bank or other authorities are exempt from the requirement.
Moreover, Sugeng added, fintech companies are subject to a limited test in regulatory sandbox. In the six-month-long tests, authorities will assess the said companies’ operational areas, transaction volume, etc. He said that if the requirements are met, they will be declared pass.
Last but not least, the aspect of payment is also covered in the regulation. Bank Indonesia explicitly bans fintech companies from using digital currencies. “It’s clear, they are not legitimate payment instruments,” Sugeng said.
Bank Indonesia Financial Technology Office acting director Junanto Herdiawan said that fintech companies have been given a month to prepare themselves before the regulation goes into effect. “They can register online. But since the system is under construction, they can visit BI,”