OJK Issues New Rules regarding Fintech Lending, Minimum Establishment Capital of IDR 25 Billion

OJK Issues New Rules regarding Fintech Lending, Minimum Establishment Capital of IDR 25 Billion

The Financial Services Authority (OJK) has finally issued the latest regulations for the fintech lending industry. The new rules are contained in POJK Number 10/POJK.05/2022 concerning Information Technology-Based Co-Financing Services to replace POJK 77 of 2016 concerning Information Technology-Based Borrowing-Lending Services.

OJK Deputy Commissioner for Public Relations and Logistics Anto Prabowo said the POJK was issued to develop the financial industry that could encourage the growth of alternative financing.
“(This POJK also) facilitates and improves access to funding for the public and business actors through an information technology-based funding service,” this POJK is also an improvement from the Financial Services Authority Regulation Number 77/POJK.01/2016 concerning Technology-Based Borrowing-Lending Services. Information (POJK 77/2016).

“In order to accommodate rapid and more contributive industrial developments and provide optimal arrangements for consumer protection, several things that have been highlighted in the POJK are regulations regarding fintech lending capital that is deposited at the time of establishment of at least Rp. The minimum capital for fintech lending when requesting a permit from the OJK is only IDR 2.5 billion.

Another rule states that fintech lending companies must also have equity of Rp 12.5 billion. In addition, the maximum limit for funding by each lender and its affiliates is a maximum of 25 percent of the final funding position at the end of the month.

The new regulation also stipulates that the operator must have at least 1 controlling shareholder (PSP). Not only that, fintech lending players are also required to submit funding transaction data to the OJK fintech lending data center by integrating the Operator’s Electronic System in the fintech lending data center.

For new fintech lending players, this POJK requires companies to first obtain a business license from the OJK. As previously reported, fintech lending providers need to obtain registered status before they can have a licensed status from the OJK. “This POJK has been in effect since it was promulgated on July 4, 2022 and at the same time revokes POJK 77/2016,” he said.

Finance