ANNOUNCEMENT 09 Nov 2016

On 9 November 2016, the Indonesian central bank (Bank Indonesia) announced a new regulation on IT-based lending services. The underlying implementing regulation was issued by the Indonesian Financial Services Authority (OJK) on 29 December 2016.

NUMBER OF INTERVENTIONS

4

  • 4 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 29 Dec 2016 | Removal date: open ended
Still in force

Controls on commercial transactions and investment instruments

Regulation 77/2016 of the Indonesian Financial Services Authority (OJK) introduces new financial restrictions on IT-based lending services. According to article 1 of the regulation, loans must be issued in Indonesian rupiah.

The regulation came into force on 29 December 2017.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 29 Dec 2016 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

According to regulation 77/2016 of the Indonesian Financial Services Authority (OJK), foreign investors may only possess up to 85% of an IT-based lending service. Previously, no FDI restrictions were in force for this particular industry.

The regulation came into force on 29 December 2017.

 
N/A
 
N/A
Inception date: 29 Dec 2016 | Removal date: open ended
Still in force

Foreign customer limit

Regulation 77/2016 of the Indonesian Financial Services Authority (OJK) also introduces a restriction that IT-based lending service may only provide loans to borrowers that originate and are domiciled in Indonesia (art. 15).

The regulation came into force on 29 December 2017.

 
N/A
Inception date: 18 Apr 2017 | Removal date: open ended
Still in force

Local operations

Circular Letter 18/SEOJK.2/2017, implementing regulation 77/2016 of the Indonesian Financial Services Authority (OJK), stipulates that all data and disaster recovery centres of IT-based lending services shall be located in Indonesia.

The Circular Letter came into force on 18 April 2017.

 
N/A