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In general, the fintech industry in Indonesia is showing a positive trend. There is a progressive implementation of innovative technologies in the field of finance and the volume of operations is growing slowly but steadily. However, it is worth noting that online technologies in Indonesia are developing with a fairly noticeable lag from leading countries.

Recently, Indonesia’s financial authorities said they warmly welcome the ongoing cooling of the global economy, noting that economic growth in many countries was unsustainable due to over-lending and led to financial bubbles. The government and financial regulators are constantly working to improve the legislative framework, especially the part related to assessing the reliability of business processes and actively encourage those wishing to register a fintech company in Indonesia. 

Key Regulators

In order to provide financial services in Indonesia, a license is a must, as well as the legal representation of the licensee in this jurisdiction. You can apply to one of the two regulating bodies to obtain a fintech license in Indonesia - the Financial Services Authority of Indonesia (OJK) and the Bank of Indonesia (BI). 

Registration of Alternative Investment Fund in Indonesia

Investment managers operate in Indonesia following the circular “On licensing securities trading companies that operate as investment managers”.

You can start work as an investment manager in Indonesia only after passing through the procedure of licensing to do business in Indonesia.

Crowdfunding platform registration in Indonesia

Despite the fact that fintech sector is still developing, a sufficient number of online companies are already operating in the country, including those with foreign capital that provide services in this area. Moreover, in Indonesia, the Association of fintech companies has already been registered. It is in connection with such a rapid and until recently uncontrolled development of fintech that lawmakers take urgent steps to restore legal order in the crowdfunding platform operations. 

A crowdfunding platform operator has to be authorized to do business in Indonesia. However, he won’t be able to get a license if his minimum paid-up capital is less than 2.5 billion IDR. This is the first condition. The second condition is the mandatory presence of qualified personnel with vast experience in the field of information technology.

Unrecognized currency

In Indonesia, crypto assets are not considered legal and are not allowed to be used as digital currencies, including digital wallets or electronic money. It is logical that the regulation of crypto assets in Indonesia does not exist.

Optimistic forecasts

Nevertheless, a close look at the financial market in Indonesia gives reason to believe that in the new decade this country could become a new center of high-tech innovation in Southeast Asia. By far it is the largest country in terms of GDP in the region and according to a number of forecasts, by 2050, it will take 4th place in the world - after China, India and the USA - in terms of GDP, taking into account purchasing power parity. 

We have provided a brief overview of the regulatory issues regarding the work of crowdfunding platforms, alternative investment funds, and the specifics of obtaining financial licenses in Indonesia. If you intend to provide financial services in Indonesia, we recommend that you get more information during the consultation on the regulation of financial technologies in Indonesia with our specialists. To get comprehensive answers to your questions feel free to contact us by filling out the application form on our website.