Indonesia plans creation of technology board on IDX for fintech startups

VP Jusuf Kalla (right) and Minister Rudiantara (middle) - Photo by Cabinet Secretary

Indonesia’s Minister of Communications and Information (Kominfo) Rudiantara has proposed to the Financial Service Agency, locally known as OJK, to create a technology board on the Indonesian Stock Exchange (IDX) to enable financial and technology (fintech) startup companies to list shares on the bourse.

He said, the listing of startups would provide an exit strategy for the investors in startups. He is hoping that Indonesia will have such a board in two years time.

“The Indonesian capital market is yet to have a technology board. It only has a developing board. I hope two years from now, we will have a technology board. We need to have an exit strategy (platform) for investors,” Rudiantara said.

President Director of IDX Tito Sulistio told DEALSTREETASIA, his office has met with the officials at the Kominfo to discuss the plan. He welcomed Rudiantara’s idea to set up a technology board at the Jakarta bourse because it will benefit the market and investors.

“We have established a team to facilitate this (IPO options for fintech startups). Once a technology board is established, startup companies can list their shares,” he said.

Indonesia has seen a wave of fintech startups in the past year engaged in services such as financing weddings or into crowd-funding. But, the fintech space currently falls in an overlap area between Kominfo and OJK. While technology startups come under the purview of Kominfo, financial services are strictly monitored by the OJK.

Earlier, Dumoly F Pardede, Deputy Commissioner of Non-Bank Financial Institutions of OJK, told DEALSTREETASIA, “In terms of technology, fintech companies could get a permit from Kominfo but for the financing services they need a license from OJK.”

“We may release the new rules this year. For now, they can still run the business. They can adjust their business later on when the new regulations are issued,” he had stated.

Meanwhile, Lukita Dinarsyah Tuwo, head of team to draft the e-commerce roadmap added that the government would release the Presidential Decree (Pepres) to regulate the online business in the country in the immediate future.

The government and Bank Indonesia will regulate online startup companies that are in the fintech space, offering various financial services.

Based on the BI regulation No.15/11/PBI/2013 on Prudential Principles in the Activities of Capital Investments says, all the financial institution including fintech companies should get endorsement from BI and get permit to enter into settlement services.

Also Read : 

Indonesia to now come out with fresh regulations on fintech business  

Indonesia to launch comprehensive e-commerce roadmap

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.