Member Article

Earlier this year, the OJK issued a new regulation on financial digital
innovation in financial services (“POJK 13/POJK.02/2018”). This is a
regulatory sandbox version of the OJK (please see our Advisory on the
regulatory sandbox of Bank Indonesia issued in 2017).

Definitions

According to POJK 13/POJK.02/2018, financial digital innovation (inovasi
keuangan digital, “IKD”) is a new activity involving a business process,
business model, and financial instruments that provide value added to
financial services involving a digital ecosystem.

IKD covers the settlement of transactions, fund raising, investment
management, crowdfunding and distribution, insurance, market support,
other kinds of financial digital support and/or other financial services, each
of which must satisfy certain requirements, such as be innovative and oriented
to the future and use information technology and communications, be useful
to the public, and be able to be integrated with existing financial services, etc.

Operators

• IKD operators can be either:

(i) Financial Institutions (including banks, capital markets players,
insurance players, pension fund players, multi finance companies
and other financial institutions regulated by Law No. 21 of 2011 on
The Financial Services Authority (OJK)); and/or

(ii) other parties engaged in financial services activities (in the form of a
limited liability company or cooperative, but not allowed to manage
any portfolio or exposure).

• IKD operators must be listed with the OJK, unless they are already
registered with and/or hold a permit from the OJK.

to continue reading "Regulatory Sandbox of OJK" please click HERE.

 

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