OJK Begins to Emphasize Securities Crowdfunding as an Alternative for MSME Financing

The Financial Services Authority (OJK) together with the Self-Regulatory Organization (SRO) continue to encourage financing for MSME players through instruments in the capital market by utilizing crowdfunding securities (CFS) as an alternative funding.

"OJK is committed to continuing to support the development of MSMEs through various regulations and policies in the financial sector. One of the concrete steps that OJK has taken is through accelerating the expansion of financial access for MSMEs in the Capital Markets sector through the use of Crowdfunding Services or crowdfunding securities," explained the Chief Executive of Capital Market Supervision, Derivative Finance and the OJK Carbon Exchange Inarno Djajadi in an official statement.

According to him, SCF can be the right alternative solution for business actors who need capital, especially for MSMEs that have not bankable Due to limited access, you can take advantage of this service through the use of digital platforms. Apart from funding, SCF is an alternative investment platform for retail investors, including those who live in MSME locations as a form of contribution to economic development in their respective regions.

Based on OJK data as of August 31 2023, there are 16 organizers who have obtained permits from the OJK. Then there are 439 publishers who have looked for alternative funding in it and are funded by 159.408 investors. The total funds raised reached IDR 951,2 billion.

One week later, on September 6 2023, the Indonesian Crowdfunding Services Association (Aludi) revealed that the performance of the SCF industry had reached IDR 1 trillion in distribution. With a total of 160.368 investors and 481 publishers.

Inarno explained that the rapid growth in the number of retail investors had a positive impact on the capital market in Indonesia. Apart from being able to provide stability and liquidity, it can also be "shock absorber" which reduces volatility and fluctuations in share prices when foreign investors choose to withdraw funds abroad from the Indonesian capital market.

For this reason, the regulator will prepare regulations aimed at providing investor protection, including the implementation of the Investment Manager classification through improving regulations related to Investment Manager licensing and drafting regulations related to mutual fund rankings and ratings, as well as changes to Investor Protection Fund regulations to cover Mutual Fund Securities and services. crowdfunding (SCF).

The following is a list of SCF companies in Indonesia: