Constrained by Licensing, We Can Stop Crowdinsurance Platform Taking Care of Each Other

Having previously decided to continue to run registered donors, services crowd insuranceTake care of each other which was initiated by Kitabisa is currently officially closed. Previously, the Investment Alert Task Force (SWI) asked Kitabisa to stop operating the platform because it had not yet obtained a permit from the OJK.

DailySocial tried to get confirmation regarding this closure, but their side directed to official site containing information on closing and subsequent processes for involved donors.

The statement said, "Mutual Care is a form of mutual cooperation innovation product initiated by the KitaBIsa Foundation. The KitaBIsa Foundation and its programs, including Mutual Guarding, are intended as a donation-based social program under the Money and Goods Collection Law (PUB). Ministry of Social Affairs. However, as an innovation product, we understand and respect the direction of the Financial Services Authority to re-evaluate the form of Mutual Care licensing. Therefore, after considering various things, and respecting the OJK directive in May 2021, it is with a heavy heart that we decide to take care of each other. finished operating. See you in the next goodness innovation program."

The site also explains the process that donors can do to return funds to their respective account balances. This application process will be opened from July 16 to July 31, 2021 and will be distributed on August 16 to 30, 2021. The balance distributed is the remaining balance as of August 16, 2021 (if any).

Permit problem

To DailySocialin a previous interview, Co-Founder & CEO of Kitabisa Alfatih Timur revealed, Mutual Guard products have been registered with regulatory sandbox OJK and its status are still waiting for further processing from the authorities. This service itself has been introduced to the public since April 2021.

“As for Kitabisa as a platform through crowdfunding Donations will still be under the auspices of the Ministry of Social Affairs of the Republic of Indonesia's Money and Goods Raising Permit (PUB)," said Alfatih.

Licensing issues became an obstacle which then triggered the closure of this Mutual Guard service. Even though you have registered with regulatory sandbox OJK, but the concept is similar to crowdinsurance and involving many people in the form of mutual assistance donations, is the concern of regulators.

As of March 2021, Kitabisa noted that there were more than 650 thousand members who had joined the Mutual Care and had distributed a total aid of Rp. 2 billion to 500 members who were diagnosed with Covid-19 or critically ill.