OJK, the Financial Services Authority of Indonesia will release a new set of rules on financial technology or fintech, owing to the rising number of startups in the fintech industry.

Triyono, the Head of Digital Financial Innovation and Micro-Finance development at the OJK explained that the new regulation will be effective after approval from the Law and Human Rights Ministry. In a discussion on Sunday, Triyono said –

“We will begin disseminating information [on the regulation] during the inauguration of a fintech center [on] Aug. 16. Hopefully, [the regulation] can be issued soon. Fintech is growing very fast; it’s impossible to make one [regulation for each type of fintech]. Therefore, to regulate [fintech], we’ve drafted a [regulatory umbrella] as a means of consumer protection”

The new regulation will only impact the different types of fintech firms that are monitored by the OJK. The types of fintech firms under the OJK include peer-to-peer (P2P) transfers, equity crowdfunding and insurance technology. Fintech branches like payment instruments are controlled by the Bank of Indonesia.

Triyono also stated that the new regulation covers important issues like the obligation of new fintech companies to register with the OJK, the obligation to protect customers and also, intermittently provide a glance at the firms’ financial reports.

As per the data collected from the Indonesian Fintech Association or Aftech, the association currently has 235 registered fintech companies. In 2016, there were only 165 companies in the association. The number of start-ups in the field has almost doubled in 2017-2018; even banks are beginning to consider using financial technology.

The OJK also has 64 registered P2P lending companies. In June 2018, a survey showed that the 64 P2P companies distributed around Rp 7 trillion, which is almost 486 million USD, in funds!

The OJK announced that it will launch a fintech center in Jakarta next month to support the development of digital business in the country. The fintech centre is part of the OJK’s effort to create a wider awareness of digital businesses. The authority will encourage universities to include fintech in their curriculum as well to create early knowledge of the field.