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Selasa, November 27, 2018

Two Obstacles Still Discouraging Foreign Investors from Investing in Indonesian P2P Lending Sector

In spite of its huge market potential, a number of issues are still discouraging foreign investors from investing in the Indonesian peer-to-peer (“P2P”) lending industry. These issues specifically related to Regulation of the Financial Services Authority (“OJK”) No. 77/POJK.01/2016 on Technology-Based Fund-Lending Services (“Regulation 77/2016”).
The following issues are of particular concern: 1) A data localization requirement which obliges P2P lending operators to establish data centers and disaster recovery centers in Indonesia, which is in turn resulting in high investment costs; and 2) Non-regulated interest rates for P2P lending which, in practical terms, allow P2P lending operators to set high interest rates which potentially increase the risk of defaults and which could result in intimidating debt collection practices.
As a solution to the two abovementioned issues, the Director of Indonesian Representatives for the Korea Internet and Security Agency (“KISA”), Aaron Wonki Chung, is advising the Indonesian Government to open up with the idea of data centers overseas and to also determine the range of P2P Lending interest rates.
For more on Regulation 77/2016, see ILB No. 3039 and ILD No. 573.
For more on this story, see Hukumonline: “Ada Ragam Persoalan, Begini Investor Asing Menilai Regulasi Fintech Indonesia”.

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In spite of its huge market potential, a number of issues are still discouraging foreign investors from investing in the Indonesian peer-to-peer (“P2P”) lending industry. These issues specifically related to Regulation of the Financial Services Authority (“OJK”) No. 77/POJK.01/2016 on Technology-Based Fund-Lending Services (“Regulation 77/2016”).
The following issues are of particular concern: 1) A data localization requirement which obliges P2P lending operators to establish data centers and disaster recovery centers in Indonesia, which is in turn resulting in high investment costs; and 2) Non-regulated interest rates for P2P lending which, in practical terms, allow P2P lending operators to set high interest rates which potentially increase the risk of defaults and which could result in intimidating debt collection practices.
As a solution to the two abovementioned issues, the Director of Indonesian Representatives for the Korea Internet and Security Agency (“KISA”), Aaron Wonki Chung, is advising the Indonesian Government to open up with the idea of data centers overseas and to also determine the range of P2P Lending interest rates.
For more on Regulation 77/2016, see ILB No. 3039 and ILD No. 573.
For more on this story, see Hukumonline: “Ada Ragam Persoalan, Begini Investor Asing Menilai Regulasi Fintech Indonesia”.

......

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Hukumonline Pro Intelligence

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Rp 5.000.000 /bulan

Lihat Detail

Pro AI

Terfavorit

Rp 8.200.000 /bulan

Lihat Detail

Pro Compliance

New

Rp 12.500.000 /bulan

Lihat Detail

*Syarat dan ketentuan berlaku

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