OJK to Monitor Fintech

The Financial Service Authority (OJK) has formed two new directorates as a response to financial technology (fintech) development. OJK deputy chief commissioner Rahmat Waluyanto said that the two new directorates are Digital Financial Innovation Unit and Fintech Permit and Monitoring Unit.

“The directors have been appointed, but it can’t yet be announced because it’s not official yet. The Digital Financial Innovation Unit will handle regulatory sand box and research,” he said, as quoted by Antara last week.

In a bid to respond to fintech development, OJK has also formed Fintech Expert Forum and fintech innovation hub. The forum will facilitate fintech industry development comprising individuals from 21 entities, such as ministries, agencies, associations, universities and other relevant business players.

The committee will give recommendations and inputs as well as facilitate coordination between agencies and fintech start-up companies. Meanwhile, OJK’s fintech innovation center is projected to become a hub of various fintech incubators to discuss developments.

OJK chief commissioner said that Fintech Expert Forum will facilitate and ensure coordination of various start-up players. The forum will discuss developing fintech issues. “And discuss future developments in fintech industry,” he said.

Indonesia has seen a rapid growth of fintech players. As of January 2016, Indonesia Fintech Association reports that the country has 165 domestic start-ups. The figure has quadrupled compared to that of in the first quarter of 2014 with 40 companies.