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In general, all parties that conduct business activities in Indonesia are subject to licensing and registration requirements under the authority of the Ministry of Investment / Indonesian Investment Coordinating Board. For businesses in the financial sector, there are additional specific licensing requirements under the authority of Indonesia’s central bank, Bank Indonesia (BI), and the Financial Services Authority (OJK), depending on the scope of business activities in which a company engages.

With regard to innovations within the fintech sector, Law No. 4 of 2023 regarding the Development and Strengthening of the Financial Sector (the P2SK Law) provides a broad scope of technology innovations that fall under the cluster of Technological Innovation in the Financial Sector (ITSK). ITSK activities are subject to licensing requirements under the supervisory authority of both the OJK and BI, depending on the specific ITSK activity.

In February 2024, the OJK issued OJK Regulation No. 3 of 2024 regarding the Implementation of ITSK (OJK Reg. 3/2024), providing a new licensing regime for business activities connected to technological innovations in the financial sector. Pursuant to OJK Reg. 3/2024, the following ITSK activities fall under the jurisdiction of the OJK:

  • transaction settlement activities for securities transactions relating to the clearing, settlement, recording and custody of financial instruments in the money market, foreign exchange market, and capital market;
  • capital raising activities, including equity crowdfunding and smart contracts;
  • investment management activities utilizing advanced algorithms, which include robo-advisory services, digital financial planning services and retail algorithmic trading;
  • risk management activities related to product development and underwriting;
  • fundraising and fund disbursement activities like peer-to-peer lending and financing agents;
  • market support activities, including credit scoring, aggregator, and e-know your customer utilizing technologies such as AI and big data;
  • activities related to digital financial assets such as cryptoassets; and
  • other digital finance activities such as Islamic digital financing, invoice trading and blockchain-based applications.

ITSK activities that fall under the jurisdiction of BI are technological innovations utilized in payment systems, specifically in the processing of payment transactions (i.e., the pre-transaction, initiation, authorization, clearing, final settlement and post-transaction stages of payment transactions).

However, BI is yet to issue an implementing regulation specifically regulating these ITSK activities. Nevertheless, companies engaged in ITSK activities related to payment systems will be subject to the current legal framework and licensing regime for payment systems under BI regulations.

Foreign organizers of trade through an electronic system, namely, any business practitioner that provides electronic communication facilities used in trade transactions and operates from outside Indonesia and meets certain criteria, shall be required to appoint a representative in Indonesia and consequently must have a foreign trade company representative office in the country.

WRITTEN BY

For further information, please contact:

Winnie Yamashita Rolindrawan – SSEK,
winnierolindrawan@ssek.com

Winnie Yamashita Rolindrawan - SSEK. Winnie Yamashita Rolindrawan holds a Bachelor of Laws in economic law from the University of Indonesia and a Master of Science in communications management. She also earned an LL.M. and a Business Law Certificate from UC Berkeley.

Winnie Yamashita Rolindrawan received her Bachelor of Laws in economic law from the University of Indonesia in 2002. In 2007, she earned her Master of Science from the Faculty of Social and Political Sciences at the same university, majoring in communications management. In 2016, Winnie received her Master of Laws (LL.M.) from the University of California, Berkeley, School of Law, where she also earned a Business Law Certificate from the Berkeley Center for Law and Business.

Winnie joined SSEK in 2007 and has represented major domestic firms and multinational companies in a variety of transactions. She has worked on numerous projects involving M&A, financial services and fintech, data privacy, pharmaceuticals and healthcare, corporate and commercial matters, foreign investment, e-commerce, and real estate and property (particularly hotels).

Her projects in the fintech sector include acting as Indonesian counsel to Didi Chuxing in the acquisition of a substantial stake in Grab Inc., a transaction valued at over US$1 billion, and acting as lead Indonesian counsel to Mastercard as the lead investor in the series B funding round of Digiasia, an Indonesian fintech startup. Winnie advises clients on all aspects of fintech and payment systems (including e-money, remittances, payment gateways and switching), from obtaining the relevant licenses to cross-border fintech M&A transactions and navigating complex regulatory, legal and commercial challenges to ensure compliance with the relevant fintech and payment system regulations of Indonesia’s Financial Services Authority (OJK) and Central Bank (Bank Indonesia).

In the healthcare sector, Winnie has represented pharmaceutical companies, including manufacturers and distributors, in providing practical solutions for their day-to-day operations, corporate and commercial contracts, and specific regulatory issues.

Prior to joining SSEK, Winnie worked at another prominent corporate law firm in Jakarta, where she was involved in various capital market transactions including IPOs, bond issues and rights issues. She helped handle several debt restructuring projects involving the Indonesian Bank Restructuring Agency (IBRA), an independent government agency established in response to the Indonesian financial crisis.

Winnie was also an associate procurement expert for an Asian Development Bank-Indonesian Ministry of National Development Planning (Bappenas) project, where she developed and drafted model national procurement documents.

Winnie is a licensed attorney and a member of the Indonesian Advocates Association (Peradi). She participated in the 2014 Academy of American and International Law, sponsored by the Southwestern Institute for International and Comparative Law in Dallas, Texas.

Having spent her childhood in Hamburg, Germany, she speaks German in addition to English and her native Indonesian.

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