The Indonesian Financial Services Authority (OJK)has introduced new regulations for fintech firms running a peer to peer lending business, according to a report in the Jakarta Post.
The new rules require firms to have a minimum of Rp1bn ($74,239) when registering with the OJK and an increased capital requirement of Rp2.5bn when applying for a business license.
Both of these sums are significantly lower than the proposed capital requirement in the draft regulation which amounted to Rp2.5bn and Rp5bn respectively.
The OJK chair Muliaman D. Hadad said that the new regulation is an important first step in ensuring the fledgling fintech sector in Indonesia falls under some form of supervision.
"What's important is they get onto our radar because we don't want to regulate the prudential aspects hastily. We want to provide [business] transparency guidelines first,” he stated in the OJK's annual press briefing.
Further regulation for other fintech players is expected before the year-end.
In addition to the capital adequacy rules, the OJK has also launched a regulatory sandbox for fintechs and other startups. Meanwhile the country's central bank, the Bank of Indonesia, is expected to launch its fintech office later this year, which is designed to provide a networking facility for fintech startups.