The Financial Services Authority (OJK) is currently drafting new regulations regarding the implementation of peer-to-peer lending (fintech lending) financial technology. This was revealed in OJK's request for response to the draft OJK Regulation Plan on Information Technology-Based Collective Funding Services to related associations and the general public in mid-November 2020. Most recently, the development of the draft is still in the context of gathering responses, which are sent no later than 25 November 2020 via written letter and email to Dwintari (This email address is being protected from spambots. You need JavaScript enabled to view it.).
Imansyah, Deputy Commissioner of the OJK Institute and Digital Finance, revealed that one of the reasons why the regulations for fintech will continue to increase is to avoid regulatory arbitrage. "Because after all, I always discuss with my friends, there are two main thoughts. Some let the market become the regulator of the fintech context. But there are also those who say we need rules to make it clear which fintech is really good, which one is bad. -abal, "he said in a virtual discussion on the 2020 Investree Conference, Friday (20/11/2020).
Therefore, Imansyah explained that the authorities are still taking a middle position, which is mainly to ensure the stability of financial services. "We hope that if a regulation is issued, the goal is to minimize regulatory arbitrage in our financial industry. Because we know, for example banking is highly regulated, but on the other hand there are businesses that are similar but have lighter regulations. So the concept of same activity is the same. The regulation is still being discussed, "he added.
For your information, there are several new regulations related to fintech lending in the RPOJK regulation. In Article 4 (1), fintech lending operators are required to have a paid-up capital of at least IDR 15 billion at the time of licensing, an increase compared to the previous provision of IDR 2.5 billion. In addition, there is a maximum limit for the total lending of funds of IDR 2 billion, but in Article 7 paragraphs 3 and 4, there are additional regulations. That is, the limit on the provision of funding by each Funder and its affiliates is a maximum of 25 percent of the total annual outstanding funding at the time of funding. Also, the limit for providing funding by shareholders and their affiliates is a maximum of 25 percent of the total annual outstanding funding at the time of funding.
In the corporate governance chapter, fintech lending operators are required to have at least 3 members of the Board of Directors. Up from the previous rule which only required one director. Half of the members of the Board of Directors must have at least 2 years experience at the managerial level in the financial services industry. In addition, administrators are required to have at least 3 members of the Board of Commissioners, half of whom have at least 2 years experience at the managerial level.
The RPOJK regulation also added that the previous regulation did not exist, namely Article 38 (2) requiring operators to provide funding to productive sectors at least 40 percent of the outstanding financing in stages with a maximum limit of three years. Also, in Article 38 (4), the amount of funding outside Java as referred to in is determined to be at least 25 percent of the total annual outstanding funding, gradually with a limit of up to three years.
