Bank Indonesia Determines One Company To Enter Regulatory Sandbox

Bank Indonesia has determined that the fintech startup PT Toko Pandai Nusantara is included in the regulatory Sandbox trial. This initial company was chosen by BI after considering the fulfillment of 8 criteria that must be met by fintech (financial technology) operators in accordance with Board of Governors Regulation Number 19/14/PADG/2017 concerning Financial Technology Regulatory Sandbox.

As of now, there are 15 fintech operators registered with BI. Companies that have been registered are Cashlez Mpos, Pay by QR, Bayarind Payment Gateway, Toko Pandai, YoOk Pay, Halomoney, Saldomu, Disitu, TaxPay, Wallezz, Lead Generation, Netzme, Mareco Pay, and iPaymu.

Toko Pandai has a B2B business model for stores and distributors that provides cash, customer and store management features, opening access to products, digital services, and financial products.

Head of the BI Payment System Policy Department Onny Widjanarko explained that the regulatory sandbox is a safe, limited trial space to test fintech providers and their products, services, technology and/or other business models have met the fintech criteria.

"There are approximately 25 [companies] that have registered as of today, 15 of which have been checked. Of those 15 that are currently in the regulatory sandbox, Pandai Stores are on," said Onny, Monday (2/4).

He continued that in order to enter the regulatory sandbox trial, in addition to having to be registered with BI, fintech that can be tested in the regulatory sandbox are fintech that contains elements that can be categorized into a payment system. In addition, it contains elements of innovation, can be used en masse, has been equipped with risk identification and mitigation as well as other matters deemed important by BI.

Regulatory sandbox mechanism

Companies that enter into the regulatory sandbox, they are obliged to ensure that the principles of consumer protection, risk management and prudence are adequate. They are required to submit reports on the implementation of trials, either regularly or on an incentive basis, in accordance with BI's request, and comply with the provisions of the laws and regulations.

As for the responsibility to BI, the company must provide the truth and accuracy of the data, information and documents submitted. Security and reliability of the systems used to run the products, services, technologies, and/or business models tested in the regulatory sandbox.

During the trial implementation in the regulatory sandbox, BI provided assistance and review as the basis for determining the status of the fintech operator trial results. The trial period is set for a maximum of six months but if necessary it can be extended once for a maximum of six months.

After the six-month trial period expires, BI will determine the status of the trial results based on an assessment of the entire series of activities. The status of the test results consists of three, namely successful, unsuccessful, and other statuses determined by BI.

If successful, you can proceed with the licensing process. But if it doesn't work, it's forbidden to market the product.

Onny assured that if there are other companies that have been registered with BI and can meet the criteria to enter the regulatory sandbox, they will be included in the next BI radar.

It is hoped that these provisions can encourage a healthy fintech ecosystem to support sustainable and inclusive national economic growth, while maintaining monetary stability, financial system stability, and an efficient, smooth, safe and reliable payment system.