JAKARTA (TheInsiderStories) – The Financial Services Authority (FSA) has plans to regulate the implementation of peer-to-peer lending (P2P) for financial technology (FinTech). The agency also aims to revise the minimum capital for the operators a minimum Rp15 billion (US$1.06 million) from earlier Rp2.5 billion.
In addition, there is a maximum limit of the lending worth of Rp2 billion by each funder. While, its affiliates is a maximum of 25 percent of the total funding that has not been paid. The FinTech operators are required to have at least three members of board directors and must have at least two years experience at the managerial level in the financial services industry.
This rule also will regulates core capital, licensing, minimum composition for productive loans, and improve the current rules POJK Number 77 of 2016. The reason to regulate the policy, said Imansyah, a deputy commissioner of FSA, to avoid the regulatory arbitrage.
In 2019, FSA through Investment Alert Task Force stopped the operational of 1.494 entities. It said that the illegal P2P lending offered their services through apps and short message text. To anticipate further illegal P2P lending risks, the regulator cooperates with 13 ministries and institutions.
They give the public information about the way to propose loan on P2P lending wisely and receive complaints of practice in P2P lending. Beside closing the illegal P2P lending, the task force also stopped 182 entities that operate without a license from the authority. Totally, the regulator has been stopping 444 illegal entities in 2019.
The entities consist of illegal foreign exchanges, money game, illegal equity crowdfunding, illegal multi-level marketing, date palm trade, property investment, umrah institution and illegal cryptocurrency and cooperative. FSA has planned to limit the number of P2P lending, aimed to balance the number between the institutions and the customers.
Also, it is to prevent customers trapped by too easily borrowing money from the apps as is common nowadays. To support it, chief executive at the agency, Riswinandi, urged the association to count the number of existing P2P lending.
Since 2016, there have been 144 FinTech lending registered at FSA office. Of the 144 registered, 17 of them have obtained a license from the agency.
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