Fintech Association Urges OJK to Issue "Registered Statement Letter"

Business actors who are members of the Indonesian Fintech Association (AFTECH Indonesia) urge the Financial Services Authority (OJK) to be more serious in showing their commitment to building the fintech industry, especially business p2p loans. Three months since the issuance of POJK Number 77/2016 there has been no significant development in terms of the number of fintech companies that have received business licenses from the OJK.

As of March 2017, only 27 fintech companies have registered with the p2p lending and through crowdfunding who have registered to become a business entity. Of this number, almost all of them have only received proof of receipt of registration documents but have not yet received a certificate of registration. The absence of a response from the OJK is an obstacle for the next business licensing application process.

Based on one of the points of POJK Number 77/2016, it is stated that within six months after the POJK is enforced, companies are required to apply for registration on condition that they have a minimum paid-up capital of IDR 1 billion for fintech companies that are already in the form of PT or cooperatives.

After that, the paid-up capital is increased to IDR 2,5 billion to apply for a permit when the company has pocketed a statement letter that it has registered a maximum of one year after the organizer is registered with the OJK.

"OJK has given a time limit of six months since the issuance of POJK No. 77/2016 for POJK companies2P lending to register. Business actors only have a moment to comply with this rule. For this reason, it is hoped that OJK can immediately provide clarity regarding this rule," said AFTECH Indonesia's Executive Director of Public Policy Ajisatria Suleiman, Wednesday (22/3).

This ambiguity has an impact on the company's performance. The reason is, making fintech company business moves p2p loans so a little limited when you want to expand outside Jakarta. For example, there is an expansion plan that Investree wants to carry out to Central Java.

Investree CEO Adrian A Gunadi said that because the company had not yet received a registration certificate, it had to postpone its expansion plan.

"When we wanted to expand to Central Java, we coordinated with the local OJK. hold expansion plans until there are clear directions. We could actually have expanded, however spirit the beginning was comply with regulations," explained Adrian, who is also the Deputy Chairman of AFTECH Indonesia.

The solution offered by AFTECH Indonesia to OJK in this regard is to issue an OJK Circular Letter (SE OJK) to clarify the registration and licensing process.

Ajisatria emphasized that business actors p2p loans has a full commitment to comply with regulations from OJK, including complying with annual fees as applicable in other financial services sectors.

Industrially, Adrian is estimated to total outstanding from all business players p2p loans from 2016 to March 2017 in the range of IDR 300 billion. Meanwhile, by year-to-date (ytd) from January-March 2017 around Rp100 billion. Adrian targets throughout this year, the total loans disbursed can reach the range of Rp. 400 billion.