The Financial Services Authority (“FSA”) has enacted Regulation No. 10/POJK.05/2022 on Information Technology-Based Collective Financing Services (“Regulation”) on 4 July 2022. The Regulation, among others, sets the requirements and prohibitions for the operator namely the other financing services institution being the pawnshop, guarantee institution, Indonesian export financing institution, secondary mortgage company, and institutions that organise mandatory management of public fund, including the organisers of social security program, pension, and welfare (“Operator”).
The requirements which apply towards the Operator, inter alia, including (a) minimum paid-up capital in the amount of Rp25,000,000,000 upon its establishment, (b) determine at least 1 (one) controlling shareholder, (c) obtain license from FSA, and (d) maximum financing cap for (i) the borrower (Rp2,000,000,000) and (ii) lender and its affiliate (maximum 25% of the latest financing position at the end of the month).
Besides, the Regulation also sets the prohibitions which apply towards the Operator, inter alia, including (a) issuing bonds, (b) having loans, (c) providing recommendations for users, and (d) publishing fictitious information and/or misleading. The Regulation revokes (i) FSA Regulation Number 77/POJK.01/2016 on Information Technology-Based Money Lending Services and (ii) Article 30 letter a of FSA Regulation Number 4/POJK.05/2021 on Risk Management Implementation in Information Technology Utilisation by Non-bank Financing Services Institution.
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Published by: IABF Law Firm
Published on: 01 Aug 2022
