JAKARTA - The Financial Services Authority (OJK) continues to strive to support strengthening capital and implement good governance to maintain business sustainability from the information Technology-Based Joint Funding Service (LPBBTI) or fintech peer to peer (P2P) lending industry.
"Well, there are so many fintech companies that stop in the middle of the road because there is indeed a lack of adequate governance, as well as capital or lack of interest for investors to be able to invest their funds for this business," said Head of the Department of Regulation and Licensing for Financial Sector Technology Innovation, Digital Financial Assets, and Crypto Assets (IAKD) OJK Djoko Kurnijanto in Jakarta, quoted from Antara, Monday, November 4.
In the press conference for the National Fintech Month (BFN) and The 6th Indonesia Fintech Summit and Expo (IFSE) 2024 at the OJK Tower Building Radius Prawiro, Djoko said that the development of the fintech industry faces four main challenges, namely business sustainability, human resources, partnerships and collaboration, and an adequate regulatory environment for the benefit of the fintech industry.
He said the sustainability of a fintech company's business can be seen from two aspects, namely corporate and capital governance, which must be good and adequate.
"And not to mention if we look at the data that investors who invest their funds in fintech now tend to fall in 2023 yesterday, but Alhamdulillah, this is also from the annual survey, which was launched yesterday by AFTECH, there is a tendency from several fintech companies to increase plans to increase exposure from outside investment," he said.
In an effort to strengthen capital, he said several fintech companies were starting to look at the increase in investment from outside parties.
"The fintech company is now starting to increase its fundraising from investors whether it's from an angel investor or from a joint venture or from another place, but the point is one of the main challenges is business continuity, which is represented by investors," he said.
Furthermore, he emphasized the importance of strengthening quality and competitive human resources in the fintech industry by optimizing the use of demographic bonuses. It is hoped that through the activities of BFN and IFSE 2024 people who are interested in fintech can meet with experts to be able to improve their digitalization-related capabilities.
"What we have to change is how they become good talents to be able to take advantage of this digital existence where they have become digital natives to become more efficient," he said.
The development of the fintech industry also requires strengthening partnerships or collaborations between stakeholders, including through the concept of the Penta Helix Innovation Hub, as emphasized in the Roadmap or Roadmap for the Development and Strengthening of Financial Sector Technology Innovation (ITSK), Digital Financial Assets and Crypto Assets (IAKD) 2024-2028 launched by the OJK on August 9, 2024.
OJK has a vision to build a Penta Helix Innovation Hub that connects regulators and the government, industry (industrial actors, associations and the private sector), financial institutions, academics and international organizations, as well as the media and the general public.
In addition, strengthening the fintech industry also requires adequate regulatory environment and supervision, especially in responding to the development of innovation and technology in the fintech sector.
Previously, the Financial Services Authority said that as of October 2024, there were 14 out of 97 peer-to-peer (P2P) lending operators who had not fulfilled their minimum equity obligations of IDR 7.5 billion.
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"Of the 14 peer-to-peer lending organizers, 5 of them are in the process of analyzing requests for an increase in paid capital," said OJK Chief Executive Supervisory of Financing Institutions, Ventura Capital Companies, Micro Financial Institutions, and Other Financial Services Institutions (PVML) Agusman in Jakarta, Friday (1/11).
In the context of enforcing consumer provisions and protection in the PVML sector, OJK has revoked the business license of PT Investreemen Jaya or Investree because it does not meet the minimum equity provisions and violations of other provisions regulated in OJK Regulation Number 10 of 2022 and deteriorating performance and has disrupted operations and services to the community.
OJK also revoked PT Rindang Sejahtera Finance's business license because the company could not make improvements to the health level and fulfillment of the provisions.
The revocation of the business license is also part of OJK's efforts to create a healthy financial services industry, especially LPBBTI organizers with integrity, have good governance and apply adequate risk management in the context of protecting customers or the community.
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