Fintech in Indonesia – P2P Lending and Crowdfunding

Peer-to-peer lending is specifically regulated in Indonesia under Financial Services Authority (OJK) Regulation No. 77/POJK.01/2016 regarding Information Technology-Based Money Lending Services, dated 29 December 2016. It provides the OJK the right to regulate and supervise peer-to-peer lending activities, including handling the registration and licensing of peer-to-peer lending platform providers.

Peer-to-peer lending in Indonesia is described as the provision of financial services whereby the lender meets the borrower in the framework of entering into a lending agreement in rupiahs directly through an electronic system by using the internet.

Crowdfunding

To date there is no specific regulation that deals with donation-based crowdfunding in Indonesia. Equity crowdfunding covers the provision of share offering services conducted by issuers to sell shares directly to investors through an open electronic system network. Equity crowdfunding is regulated under OJK Regulation No. 37/POJK.04/2018 regarding Equity Crowdfunding, dated 31 December 2018.

Under this regulation, a licensed equity crowdfunding platform provider or organizer is able to provide access for issuers (Indonesian limited liability companies) to sell their shares to investors that are also using the platform. An equity crowdfunding platform company is required to be an Indonesian limited liability company or an Indonesian cooperative with a minimum issued and paid-up capital of 2.5 billion rupiah and to have registered with and received a license from the OJK to provide, manage and operate the equity crowdfunding platform.

This first appeared in Lexology GTDT Fintech 2021. 

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