6 May 2019
INDONESIA: Government Crackdown Shuts Down 144 Unlicensed Fintech Companies
Unlicensed fintech companies and platforms have been targetted as part of a new government crackdown, with the Financial Services Authority (OJK) banning and blocking as many as 144 peer-to-peer lending firms and online services. In addition, the OJK has released a list of the proscribed companies, while advising would-be customers to only use one of the 106 currently-registered operators.
According to the OJK, 543 unauthorised fintech firms have been identified this year alone, which is in addition to the 404 uncovered in the previous year. It has, however, been acknowledged that some of these unauthorised operators may be in the process of applying for licences.
The OJK has also indicated that it intends to shut down all unlawful fintech platforms, including websites and smartphone apps, as part of this latest initiative, while it will also be regularly updating its online list of licensed/unlicensed fintech companies. It is hoped that this more stringent regime will improve the operating environment for legally-compliant overseas investors looking to enter the country’s fintech sector.