13 Jan 2017
INDONESIA: Licensing Terms and Maximum Loans Announced for Peer-to-Peer Lending Firms
All peer-to-peer (P2P) lending start-ups will have to register and obtain an operating licence from Otoritas Jasa Keuangan (OJK), the country’s financial services authority. In order to qualify for the licence, such businesses will need operating capital of at least Rupiah 2.5 billion (US$188,000).
While no maximum interest rate has been set, approved businesses will not be allowed to agree any loan in excess of Rupiah 2 billion (US$150,000). Additionally, no overseas investor will be permitted to own in excess of 85% of any such operation. Further legalisation covering the sector is expected to be announced in the coming months.