19 Dec 2017
What Are The Important Issues For Setting Up A Peer To Peer Lending Company In Indonesia?
Crowd funding business is one of hot topic in Indonesia currently. Both local and foreign investors have started to run this fintech business.
There are some important issues that investors need to understand before starting this P to P lending, among others are:
a. The limitation of ownership:
OJK (Financial Service Authority) has ruled that foreign ownership is maximum 85% (eighty-five percent).
b. Bitcoin / virtual currency / cryptocurrency is not allowed by authority here.
In the future, the company can be possible to do IPO but no ICO.
c. There is a high risk of loan from borrower, since if they fail to pay, it is under administrative law not criminal law.
d. If P to P lending will require ‘collateral’ then they had to check if it is against the other regulations such as banking regulations.
e. Central Bank (Bank Indonesia) just ruled the obligation to have BI’s registration for activities of ‘e-payment’ system services operator in the Fintech operations (BI Regulation No.19/12/PBI/2017 dated 29 Nov 2017).
f. Capital Investment Coordinating Board (BKPM) still have very minimum regulations regarding P to P lending.
They follow OJK and BI regulations although we have to process the setting up a foreign company (PT. PMA) at BKPM.
Having understanding and awareness of the above issues will be useful for new investors in this business.
Agung Tjahjady SH, CLA, CPA, MM, BKP
Registered Tax Consultant, Advocate
+62 816 825 348
BVD Oriana User
Read Other Updates
Penurunan Tarif PPh Final untuk UMKM
13 Jul 2018
When the Term Sheets needed to be Binding?
02 Jul 2018
Tax Implications on a Start-up Company and VC
19 Jun 2018
Lawyers for Capital Market go to Bangkok
08 May 2018
TP Docs Series:
26 Mar 2018
CFC Rules in Indonesia
01 Mar 2018
Tax Amnesty: Pengisian dan Pelaporan Penempatan Harta Tambahan
27 Feb 2018
Ke Bank Indonesia atau ke Otoritas Jasa Keuangan-kah Pendaftaran Perusahaan Fintech yang Kudirikan
26 Feb 2018