OJK Revokes Listed Status of 18 Fintech Platforms from Digital Financial Innovation List

The Financial Services Authority (OJK) has officially announced the revocation of the status of Digital Financial Innovation Providers (IKD) to 18 digital companies. This action was carried out from July 2020 to June 2021.

Some of the names whose status was revoked include PropertiLord, which was previously registered with IKD as property investment management; DuitPintar, NATURAL from the cluster ; Mobile Money from financial planner; to GoBear from [known business GoBear in Indonesia it has been discontinued].

There are three grounds of authority in revoking the status. First, there is a change in the business model, business processes, institutions, and operations of the IKD owned by the related company. Second, the organizer returns the letter of determination on the registered status it has. And third, the organizers violated the provisions of the regulations.

Previously, it was known that IKD was listed in the POJK policy no. 13/POJK.02/2018. Inside contains a digital player in progress research and deepening of business models through the mechanism regulatory sandbox. If the research process has been completed, it is possible for the IKD Operator to proceed to the registration and licensing process which will be arranged later.

Service innovation fintech indeed quite rapidly in the last 10 years, a variety of services were launched to facilitate the ease of financial transactions. Unfortunately, not all types of businesses are accommodated by regulation. To keep up with the fast pace of technology, the mechanism regulatory sandbox presented, both by OJK and Bank Indonesia as government representatives in charge of overseeing the financial industry.

Based on service mapping in Fintech Report 2020Currently, there are more than 20 types of financial services whose business models are listed by regulators. In the IKD cluster itself, there are 16 business models that have been observed since August 2020, including them insurtech and regtech.

The presence of authority in the industry fintech Of course important, one of the most significant functions is to enforce regulations to protect consumers themselves. On the other hand, industry fintech memes are very much needed in Indonesia, to facilitate the community underserverd and unbankable which is still quite significant – while providing a better understanding of financial literacy.