Indonesia's Financial Services Authority (OJK) has issued a regulation for financial technology (fintech) firms in the country that run peer-to-peer (P2P) lending business, The Jakarta Post reported.
Under the new regulation, fintech firms must have Rp 1 billion (US$74,239) capital when it registers with OJK, and have a capital of RP 2.5 billion when they apply for a business licence.
The report added that both figures are lower than the proposed capital requirement in the draft regulation, which is Rp 2 billion and Rp 5 billion, respectively.
OJK's Chair Muliaman D. Hadad said the regulation is only their first step to regulate and supervise these businesses.
"What's important is they get onto our radar because we don't want to regulate the prudential aspects hastily," said Hadad at the OJK's annual press briefing. "We want to provide [business] transparency guidelines first."
Meanwhile, OJK has also implemented a regulatory sandbox last year, wherein fintech companies can test the services they want to offer while being supervised by the authority, before it issues further regulations.
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