Governement Aims to Protect Fintech Customers

Coordinating Minister for Economic Affairs Darmin Nasution wants to have an agency that protects customers of (financial technology/fintech) companies. The agency will also monitor and supervise fintech businesses to make sure they comply with existing laws and regulations.

The agency, he said, will work in similar ways to the Central Securities Depository (KSEI) and the Clearing and Guarantee Corporation (KPEI) in supervising capital market transactions.

“In the case of contract breaches, consumers must not incur losses. There must be an agency that covers the loss, he said at the Indonesia Fintech Festival, Tuesday, August 30.

He said that the fintech industry offers an opportunity for entrepreneurs and the financial services sector. But fintechs have their negative impacts and risks as well, that’s why the OJK and Bank Indonesia (BI) must regulate the industry for the protection of its customers.

BI Governor Agus Martowardojo supports the development of fintechs, saying it is an industry that allows faster, more efficient services for the financial industry in terms of payment system.

Agus said he has three hopes for the fintech industry. First, for international fintechs to register as an Indonesian entity. Second, to have all payments denominated in rupiah, and third is for the industry to save their funds in the national banking system.

President Joko Widodo, who attended the Fintech Festival, said that the business is a golden opportunity for people living in remote areas. Widodo believes that better access to financial services will crunch income gap.

“I invite fintech businesses to innovate and spawn new breakthroughs in the use of digital technology that will fast-track financial inclusivity,” he said.