Indonesia Drives Digital Banking Revolution.
Indonesia has embraced the digital banking revolution, laying the groundwork for fintech companies to challenge traditional banks
Indonesia is one of a growing number of Southeast Asian economies to have embraced the digital banking revolution, introducing new reforms designed to speed up the pace of this transformation.
Indonesia’s Financial Services Authority (OJK) issued two new regulations covering both digital and commercial banks on July 30 – OJK Reg 12/2021 and OJK Reg 13/2021 respectively – with the changes coming into effect on October 30.
The new rule sets not only streamline a number of existing regulations, but have also introduced the country’s first clear definition of a digital bank. They are designed to enhance both the banking system’s efficiency and its competitiveness, with the OJK noting at the time that it wanted to see greater consolidation within the sector.