JAKARTA (TheInsiderStories) - The recent regulations issued by the Financial Services Authority (OJK) on financing facilities provided by financial technology (Fintech) and pawnshop companies will help the society to get greater access to financing, the Executive Head of OJK for Non-Banking Financial Institutions (IKNB) Firdaus Djaelani said Tuesday (Feb 14).
The two new regulations — No. 77/POJK.01/2016 on Fintech and No. 31/POJK.05/2016 on pawnshop — are efforts by the OJK to support the financial inclusion program, which ultimately stimulate economic growth, reduce poverty and create an evenly distributed economic growth.
The two regulations provide guidelines for fintech and pawnshops in providing financing (peer to peer lending) to the customers as well as protection for consumers.
The POJK on Peer to Peer Lending regulates on how to run the business, registration and permit, mitigation of risks, reporting and information technology governance.
“OJK has a desire to issue comprehensive regulation so that all aspects of the Fintech business are regulated,” said Firdaus.
Meanwhile, the POJK on Pawnshop Business regulates the legal entity and ownership, capital, registration mechanism, business activities that are allowed, reporting as well as supervision and examinations.
Since the POJK 77/POJK.01/2016 issued in 2016, one Fintech on Peer to Peer Lending has registered with OJK and two firms are in the process of registration.
Meanwhile, three pawnshop business players have registered with OJK since the POJK 31/POJK.05/2016 on Pawnshop Business launched in July 2016. The two regulations have been used as platform by OJK to strengthen and develop the fintech and pawnshop business in the country. (*)