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Financial Technology (FINTECH)

Financial technology is the use of technology and innovation in the financial system to produce new products, services, technologies and/or business models, which can potentially disrupt monetary stability, financial system stability and/or the efficiency, availability, security and reliability of the payment system.  The development of financial technology brings numerous benefits for consumers, businesses and the national economy, yet also contains the potential risk of financial system disruption if not effectively mitigated.

 
In that context and to stimulate financial innovation while applying consumer protection principles, Bank Indonesia, as the payment system authority, has issued Bank Indonesia Regulations (PBI) and Board of Governors Regulations (PADG) concerning financial technology and the regulatory sandbox.

 
Through Bank Indonesia Regulation (PBI) No. 19/12/PBI/2017 concerning Financial Technology, Bank Indonesia mandates compulsory registration for financial technology payment providers.  Notwithstanding, payment system service providers licensed by Bank Indonesia are exempt from mandatory registration along with FinTech companies that fall under the jurisdiction of other authorities.

 
Bank Indonesia publishes a list of registered FinTech companies on its official website.  Mandatory registration does not obviate the responsibility of FinTech companies to apply for a licence from Bank Indonesia or other relevant authority.

 
Supporting financial technology development and innovation, Bank Indonesia provides a safe place for FinTech companies to trial their products, services, technologies and/or business models at Bank Indonesia through use of a Regulatory Sandbox. Board of Governors Regulation (PADG) No. 19/14/PADG/2017 concerning the Financial Technology Regulatory Sandbox unambiguously regulates the trialling procedures and processes within the regulatory sandbox.

 
The registration procedure for FinTech companies is explicitly contained in Board of Governors Regulation (PADG) No. 19/15/PADG/2017 concerning the Registration, Information Submission and Monitoring Procedures for Financial Technology.  Registration is achieved through an application currently under development.  FinTech companies can register by downloading the registration form from the official Bank Indonesia website.  The completed form and supporting documents must be submitted to Bank Indonesia.  If required, the completed form and supporting documents can be submitted to Bank Indonesia through email to BIFinTechOffice@bi.go.id.

 

Financial Technology Registration

Registration is mandatory for all FinTech companies meeting the financial technology criteria stipulated in Article 3, Paragraph (2) of Bank Indonesia Regulation (PBI) No. 19/12/PBI/2017 concerning Financial Technology.  Nevertheless, payment system service providers licensed by Bank Indonesia are exempt from mandatory registration along with FinTech companies that fall under the jurisdiction of other authorities.  Mandatory registration is required, however, if a FinTech company that is under the jurisdiction of another authority wishes to provide payment system services.

Financial Technology Registration

Download Registration Form

Regulatory Sandbox

​Financial Technology (FinTech) companies registered at Bank Indonesia may conduct trials within the Regulatory Sandbox in accordance with Board of Governors Regulation (PADG) No. 19/14/PhD/2017 concerning the Financial Technology Regulatory Sandbox.  Financial technology companies ar​e designated in advance by Bank Indonesia to conduct trials within the Regulatory Sandbox.

Information Submission

Financial technology companies licensed and/or approved by Bank Indonesia as Payment System Service Providers and that meet the specific criteria for Financial Technology are not required to register.  Notwithstanding, in accordance with Article 5, Paragraph (3) of Bank Indonesia Regulation (PBI) No. 19/12/PBI/2017 concerning Financial Technology, financial technology companies licensed and/or approved by Bank Indonesia are still required to submit information concerning new products, services, technologies and/or business models that meet the criteria as Financial Technology.

All forms must be completed in full and subsequently submitted to Bank Indonesia via email to BIFinTechOffice@bi.go.id.​​​

Frequently Asked Questions (FAQ)

Frequently Asked Questions (FAQ) seek to answer the questions most frequently asked by the public in relation to Financial Technology.

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