In response to the rapid development of financial technology (fintech), the Indonesia Financial Services Authority (OJK) has taken a significant step towards strengthening regulations in the digital financial sector with the introduction of Regulation of the OJK (POJK) Number 3 of 2024. This regulation aims to establish a robust framework for the operation of financial sector technology innovations, including digital financial assets and cryptocurrencies. Its primary objective is to foster stable economic growth.

Hasan Fawzi, the Executive Head of Financial Sector Innovation Technology Supervision, Digital Financial Assets, and Cryptocurrency at OJK, underscored the importance of striking a balance between innovation and risk mitigation. “Our primary concern is risk management, particularly ensuring consumer protection and mitigating potential risks that may arise from the implementation of Financial Sector Innovation Technology (ITSK) providers, all while maintaining the overall stability of the financial system,” he remarked.

POJK 3/2024 is designed to promote market integrity and ensure the stability of the financial system by regulating the conduct of ITSK providers.

Djoko Kurnijanto, the Head of Regulation and Licensing for Financial Sector Innovation Technology, Digital Financial Assets, and Cryptocurrency at OJK, elaborated on some of the regulation’s key features. One of the most crucial aspects is the eligibility criteria for institutions seeking to test new innovations.

These criteria include:

  • Innovations with a scope within the Indonesian financial services sector, intended for use by consumers, partners, and the wider community.
  • Innovations that demonstrate novelty or possess a significant differentiating factor from existing financial sector services.
  • Innovations that provide benefits, improve services, and add value to consumers, the community, or the financial sector ecosystem.
  • Innovations that are ready for testing and development.
  • Innovations that require support in the trial and development phase and are not yet regulated or supervised under existing financial sector provisions. Additional criteria may also be set by OJK.

The Indonesian Fintech Association (AFTECH) welcomed this regulation, viewing POJK 3/2024 as a positive development that will strengthen the Indonesian fintech ecosystem. The Executive Director of AFTECH, Aries Setiadi, pledged his organization’s support in assisting its members in navigating the new regulation. “This regulation not only guarantees legal certainty for businesses but also encourages responsible innovation,” stated Aries. AFTECH actively participates in discussions and activities to ensure the effective and efficient implementation of POJK 3/2024, with the ultimate goal of enhancing financial inclusion and delivering greater benefits to the Indonesian community.

POJK 3/2024 exemplifies OJK’s commitment to fostering an integrated fintech ecosystem. This activity-based approach aims to support innovation while prioritizing consumer protection and risk mitigation. This transformative step is expected to pave the way for a healthy, impactful, and integrated ITSK ecosystem, all while safeguarding the stability of Indonesia’s economy and financial system.