Regulatory AlertsIndonesia: fintech & payments regulation
RegulatedBank Indonesia regulates payments/e-money; OJK oversees fintech innovation; Bappebti handles crypto derivatives
- Lead regulator
- Bank Indonesia
- Also involved
- OJK (fintech innovation/crowdfunding) · Bappebti (crypto assets) · OJK (AML/CFT oversight)
- Core law
- Law No. 21 of 2011 on Financial Services Authority & Law No. 7 of 2011 on Currency
- Entry capital
- IDR 2.5 billion (E-money)
- Approval timeline
- 6-12 months for full licensing
- Customer assets
- Segregated in trust accounts at BI-approved banks
- Data protection
- Law No. 27 of 2022 on Personal Data Protection · Kominfo
- Sandbox
- Yes - BI Fintech Regulatory Sandbox
Indonesia's fintech landscape is bifurcated: Bank Indonesia (BI) strictly regulates payment services and e-money issuance under PBI 23/6/2021 and PBI 20/6/2018 respectively. The Financial Services Authority (OJK) supervises broader financial technology innovations, including crowdfunding and alternative credit scoring, under the Financial Sector Development and Strengthening Act. Bappebti retains jurisdiction over crypto assets and derivatives.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | LicencePayment Service Provider (PJP) License Requires segregation of funds and BI system integration | IDR 10 billion (Type 1) | 6-12 months | Bank Indonesia |
| E-money & wallet issuance | LicenceElectronic Money Issuer License[1] Strict capital and foreign ownership limits apply | IDR 2.5 billion | 6-12 months | Bank Indonesia |
| Domestic money transfer | LicenceFunds Transfer License[2] Covers domestic remittance and fund transfer services | IDR 10 billion | 6-12 months | Bank Indonesia |
| Cross-border remittance | LicenceCross-Border Payment License Requires specific approval for cross-border settlement | IDR 10 billion | 6-12 months | Bank Indonesia |
| Agent network | Uncertainverify with regulator Agent network rules exist but specific capital not detailed in source | — | — | — |
| Open banking / account information | Uncertainverify with regulator Open banking framework is emerging under OJK/BI | — | — | — |
| Foreign-exchange services | LicenceNon-Bank FX License 100% Indonesian ownership required for non-bank FX | IDR 5 billion | 3-6 months | Bank Indonesia |
New — what changed recently
- 2024-01-01POJK No. 27 of 2024 — OJK assumed full regulatory authority over digital financial assets and crypto assets from Bappebti.
- 2024-01-01POJK No. 3 of 2024 — Established licensing framework for Financial Sector Technology Innovation Providers (ITSK).
- 2024-01-01POJK No. 40 of 2024 — Implemented legal framework for IT-based collective financing (crowdfunding) with IDR 12 billion equity requirement.
Market-entry checklist
- 1Incorporate local entityMust be a PT (Perseroan Terbatas) with 100% Indonesian ownership for FX and e-money.
- 2Secure minimum capitalDeposit IDR 2.5 billion for e-money or IDR 10 billion for payment processing into a BI-approved bank.
- 3Submit BI applicationFile for PJP or E-money license via BI's electronic system with technical and compliance docs.
- 4Register with OJKIf offering crowdfunding or alternative credit scoring, register as an ITSK provider with OJK.
- 5Implement AML/CFTEstablish risk-based AML/CFT program compliant with POJK and BI regulations.