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What Are The Important Issues For Setting Up A Peer To Peer Lending Company In Indonesia?_1

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.


Best Regards,
Agung Tjahjady SH, CLA, CPA, MM, BKP
Registered Tax Consultant, Advocate

+62 816 825 348

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