JAKARTA – The Financial Services Authority (OJK) is reviewing new regulations regarding the implementation of Financial technology peer to peer lending or fintech lending. The plan is based on the draft Regulation OJK on Information Technology-Based Collective Funding Services to associations and the general public in mid-November 2020.
Deputy Commissioner of the OJK Institute and Digital Finance. Imansyah said the plan for the new regulation was due to the massive addition of fintech and avoiding regulatory arbitrage. “There are two main thoughts, there are those who let it. Let the market become the regulator of the fintech context. But there are also those who say we need rules to make it clear which fintech is really good. Which ones are fake, “he said, last weekend.
According to him, currently the new regulatory process is still taking a middle position. Mainly ensuring the stability of financial services.
“We hope that if any regulations, the goal is to decrease regulatory arbitrage in our financial industry. Because we know, for example banking highly regulated, but on the other hand there are businesses that are similar but have lighter regulations. Concept of same activity, same regulation we are still discussing, “he explained.
Legal Basis of Fintech Lending
In Article 4 (1), operators are fintech lending required to have a paid-up capital of at least Rp. 15 billion at the time of licensing.
In addition, there is a maximum limit on the total lending of funds of Rp. 2 billion, however, in Article 7 paragraphs 3 and 4, there is an additional rule. Namely the limit for the provision of funding by each Funder and its affiliates is a maximum of 25 percent of the total Funding that has not been paid or annual outstanding at the time of funding
As well as, the limit on the provision of funding by shareholders and their affiliates is no more than 25 percent of the total annual outstanding or outstanding funding at the time of funding. In the corporate governance chapter. They require operators in fintech lending to have at least three members of the Board of Directors.
In addition, it requires organizers to have at least three members of the board of commissioners. Half of whom have at least two years of experience at the managerial level. The regulation on the OJK RP also adds to the previously missing rules. Namely, in Article 38 (2) it obliges administrators to provide funding to productive sectors at least 40 percent of the outstanding financing. In stages with a maximum limit of three years.
Also, in Article 38 (4), the amount of funding outside Java as referred to in is determined to be at least 25 percent of the total funding that has not been paid or outstanding on an annual basis, gradually with a limit of up to three years.
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