Bank Indonesia, the central bank of the Republic of Indonesian, has joined its nearest neighbours and launched a «special office» to facilitate the development of financial technology.
Currently, there are about 120 fintech players operating in Indonesia, of which 56 percent are engaged in the payment, clearing and settlement business.
According to online statistics portal Statista, the value of fintech’s financial transactions in Indonesia would reach US$14.5 billion in 2016.
The Ubiquitous Sandbox
As part of the assessment function, the Bank Indonesia (BI) fintech office, like its Australian, Hong Kong and Singaporean peers, is introducing a regulatory sandbox. «We have come to the conclusion that technological innovation is inevitable. With the rapid changes, regulations should not try to precede innovation, but it should stay close to innovation,» said Agus Martowardojo (pictured) the central bank governor.
Four Key Initiatives
The central bank said that its fintech office would work to develop four major initiatives, namely:
- Facilitating the exchange of ideas and information
- Presenting the latest information of fintech development through regular meetings with authorities and international institutions
- Assessing and mapping the risks of business models and implementing the so-called «regulatory sandbox»
- Providing one-stop services to help fintech players understand regulatory policies.
