The Fintech Startup Minimum Capital Limit Will Be Determined by OJK

The presence of startups in the segment financial technology (fintech), which is currently appearing more and more, is being closely monitored by the Financial Services Authority (OJK). One thing that will later make clear rules is related to determining the minimum capital limit for the fintech industry. One of the reasons the regulation was made is for consumer protection.

"We are discussing this again, not only about the IKNB sector (non-bank financial industry), but also in the banking sector, the capital market as well. But we set it simply because there are many startup companies. We require capital, but only a little," said the Head OJK IKNB Supervision Executive Firdaus Djaelani to balance.

So far, fintech as a company that is included in the technology-based financial industry category mostly uses its own capital to run its business and not deposit taker or companies that raise funds from the public. Thus later the rules will be adjusted to the right nominal and certainly not too large in number. Until now, the OJK is still not ready to determine what is the appropriate minimum capital limit for fintech startups.

"The light things first. Later on, when it's already done, we'll increase it a bit bigger or something. The important thing is concern Our goal is how not to harm consumers," said Firdaus.

One of the determining aspects of the stipulation is the existence of the office and the use of the office server by fintech startups, which will affect the amount of the capital limit determined.

"So, for example, how much is it, the rent for a shophouse and so on. The cheapest shop-house rental is Rp. 100 million, is it Rp. 500 million, or Rp. 1 billion or how much," added Firdaus.

In addition, what is also needed by fintech startups is the existence of a custodial institution, which functions to store customer digital data, in order to avoid fraudulent actions from 'naughty' customers.

"For example, the customer is a bit naughty, so he changes it a bit, then there will be a dispute here, but it's different there. So, if for example there is a dispute, we will look at the custodian because he also has a digital one," said Firdaus.

Opportunities for fintech technology to be applied by insurance companies

On the other hand, the convenience offered by fintech to provide information, services and needs needed by customers is the reason why the Indonesian Life Insurance Association (AAJI) considers fintech to be applied by insurance companies.

It is hoped that in the future fintech will not only help sales of insurance products, but also speed up the purchasing process, premium payments, product explanations and policyholder claims so that customers do not need to come to insurance company branch offices.