Eight Indonesian fintech startups officially registered under OJK

Peer-to-peer lending startups Investree, Amartha, and KoinWorks are among eight Indonesian fintech startups that have been officially registered under the Financial Services Authority (OJK) in May 2017.

“Up until now there are about 14 other fintech companies which are in the process of registering, and three companies that have yet to notify us whether or not they intend to proceed (with the process),” Edy Setiadi, OJK deputy commissioner for non-banking supervision, told local media.

Successful registration of Indonesian fintech companies is important as it marks the government’s formal recognition of the sector.

Adrian Gunadi, Investree co-founder and CEO said, “In practice, P2P lending services provide access to financial intermediaries for various parties with no face-to-face contact, which raises doubts about using similar services. We hope that the enrollment of Investree in OJK will be able to cultivate the trust of all stakeholders, especially lenders and borrowers who join our platform and the community in general, so that everyone can grow,” he stated.

As of June 5, 2017, Investree claims to have successfully disbursed Rp 148 billion unfunded loan with 592 total loans, 17.5 per cent average rate of return, and zero default.

Another firm that has been successfully registered, Amartha, hopes to boost small and medium enterprises that are its customers. Amartha received a series A funding in March, in a round that was led by Mandiri Capital Indonesia – a venture capital arm of Bank Mandiri. Existing backers Beenext and Midplaza Holding also participated in the investment, along with other new investors including Lynx Asia Partners

Amartha started in 2010 as a micro-finance institution. Six years later, it changed into a P2P lending marketplace. Today, Amartha claims to have facilitated over $6 million in loans to over 30,000 women micro-entrepreneurs while maintaining a 7-year long 0% default rate.

Keeping up with fintech

Indonesia’s fintech sector is currently the second biggest in the region after Singapore. President Joko ‘Jokowi’ Widodo realizes that the sector can play a crucial role in jumpstarting the country’s digital economy growth.

Under his administration, Indonesia launched a digital roadmap last year, which in January was followed by a new set of rules for the fintech sector, specifically regulating P2P lending platforms.

Every P2P lending startup must register and obtain a business license from the authority before running its business. A company must have at least $74,239 in capital upon registering, and an additional $186,300 to apply for the operating license. In total, the company must have access to a minimum $260,000. The numbers are half the required capital initially pegged in the draft version of the regulation, which was roughly $500,000.

It also regulates foreign ownership, which is limited to 85 per cent, and the value of loans that can be transacted, which cannot surpass $150,000.

Also Read:

Indonesia DB: Rework app launch; 500 Startups’ new partner; OJK-Aus fintech pact

Indonesia regulator expects fintech firms to double to 250 by year-end

Indonesia lender BRI hires Telkom exec to boost fintech, to form VC unit

Grab Indonesia to develop mobile payments, partner with fintech companies: Ridzki Kramadibrata

Japan’s SBI Group invests $6.3m in Indonesian P2P lender Taralite

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.