Financial Services Authority of Indonesia sets up FinTech Advisory Forum
The Financial Services Authority (OJK) of Indonesia inaugurated a FinTech Advisory Forum on June 16. The Forum will serve as a platform to set the direction for the FinTech industry's development. The forum will facilitate and ensure smooth, consistent, and constructive coordination between agencies, ministries, and relevant parties, and FinTech startup players.
Members of the FinTech advisory forum include representatives from OJK, Bank Indonesia, the Coordinating Ministry for Economic Affairs, the Ministry of Finance, the Ministry of Industry, the Ministry of Trade, the Ministry of Communication and Informatics, the Ministry of Home Affairs, and the Ministry of Law and Human Rights.
In addition, there are members from the Creative Economy Agency, the Indonesia Stock Exchange, the Indonesia Stock Market Clearing House (KPEI), the National Police's Criminal Investigation Department (Bareskrim), The Association of State-Owned Banks (Himbara), the Indonesian FinTech Association, The Indonesian Life Insurance Association (AAJI), The Association of Indonesian General Insurance Companies (AAUI), the Association of Indonesian Securities Companies (APEI), the University of Indonesia; and the Bandung Institute of Technology (ITB).
Duties of the FinTech Advisory Forum include discussing the latest issues related to FinTech and future direction for the industry's development; facilitating coordination between agencies, ministries, and other related parties to make certain that FinTech potential is optimised; and ensuring that the participation and communication between relevant ministries/agencies, other related parties and FinTech startups take place in a regular, consistent, and constructive manner.
Issues to be considered include consumer protection quality, criminal acts of money laundering and terrorism financing, and financial system stability.
As of January 2016, the Indonesian FinTech Association data showed that the number of FinTech startups operating in Indonesia reached 165 companies, an increase of over 4 times from the 40 companies in 2014's fourth quarter. (Our interview on Indonesia’s FinTech landscape with Eddi Danusaputro, Chief Executive Officer of Mandiri Capital on the Indonesian FinTech landscape is here.)
Chairman of the OJK's Board of Commissioners, Muliaman D Hadad, said, “Establishment of the FinTech Advisory Forum is expected to be beneficial and have positive impacts on efforts to promote the FinTech industry and create fair, health, competitive, and sustainable business climate for the financial services industry." He recommended to the Forum to see itself like an expandable house. This means that it would be open to more members, based on the scope of issues to be discussed.
Prior to the FinTech Advisory Forum inauguration at the Indonesia Stock Exchange building, a panel discussion was held on the theme of "Developing Digital Finance Innovation Hub in Indonesia." It discussed efforts to develop an innovation hub that facilitates FinTech startups development through FinTech incubators and accelerators.