Indonesia's OJK Introduces New Regulation On IT-Based Co-Financing Services

(12 August 2022) Indonesia's Financial Services Authority (Otoritas Jasa Keuangan  or "OJK") has issued a new regulation on information technology-based co-financing services, which include peer-to-peer ("P2P") lending. This new regulation seeks to improve the previous regulation on the peer-to-peer lending sector, OJK Regulation No. 77 /POJK.01/2016 regarding P2P Lending Services ("OJK Reg. 77/2016"), and support the growth and development of fintech-based financial service entities. At the same time, it will impose new requirements on both foreign and domestic information technology-based co-financing service companies in Indonesia.

This new regulation is OJK Regulation No. 10 of 2022 regarding Information Technology-Based Co-Financing Services ("OJK Reg. 10/2022"). OJK Reg. 10/2022 was issued on June 29, 2022 and became effective on July 4, 2022.