KitaCan Shuts Down Take Care of Each Other Crowdinsurance Platform Due to Permission Issue

After deciding to continue with the registered donors, Take care of each other crowdinsurance service by Kitabisa is now officially shutdown. Previously, the Investment Alert Task Force (SWI) asked Kitabisa to stop operating the platform as it was yet to obtain a license from OJK.

DailySocial tried to confirm on this closure, but the team directed us to the official website which contains information on the closure and the next process for the donors involved.

"The statement said, "Guard each other is a mutual cooperation innovation product initiated by KitaBIsa Foundation. The Foundation and its programs, including Mutual Jaga, 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 decision of the Financial Services Authority to re-evaluate the form of Mutual Jaga licensing. Therefore, after considering various issues, and respecting the OJK's direction in May 2021, it is with a heavy heart that we decide Mutual Jaga to stop the operation. See you in another good will innovation program."

The website also mentioned the return process for donors to send back the funds to their respective accounts. 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 (the current balance).

Permission issues

In a previous interview, Kitabisa's Co-Founder & CEO, Alfatih Timur, revealed to DailySocial that Saling Jaga product has been registered with the OJK regulatory sandbox and is currently waiting for further direction from the authorities. This service alone has been introduced to the public since April 2021.

"Kitabisa as a donation crowdfunding platform will still be held under the Money and Goods Raising Permit (PUB) of the Ministry of Social Affairs of the Republic of Indonesia," Alfatih said.

Licensing issues became an obstacle which then triggered the closure of Saling Jaga service. Although it has been registered with OJK's regulatory sandbox, the concept, which resembles crowdinsurance and involves many people in the form of mutual cooperation, has gained the regulator's attention.

As of March 2021, Kitabisa noticed that there were more than 650 thousand members who had joined Saling Jaga and had distributed a total donation of Rp. 2 billion to 500 members who were diagnosed with Covid-19 or critically ill.

-Original article is in Indonesian, translated by Kristin Siagian