Canada    FinTech Guide    Chapter 11    Indonesia

11. Identification
Indonesia  Indonesia

Since this identification service is still considered as a lowly regulated business, it will take some time before this business can grow into a modern platform and be used widely by Indonesian business players or customers.

Legal Affairs

Up to date, there are no specific regulations, obligations and requirements with re-spect to provide identification services in Indonesia.

Therefore, a fintech company conducting this business will only need to comply with general business license (e.g. certificate of domicile, company’s certificate and trading business license, as relevant) in Indonesia.

However by considering the procedures as stated in BI Regulations on Fintech and should the business player deems its business model can be considered as “Financial Technology”, it is possible for them to firstly register to BI as financial technology operator and follow the determined procedures i.e. registration and Regulatory Sandbox.

Please see detailed explanation on Part “1. Payment Service / Mobile Payment”, particularly on “Legal Affairs” part.

Economic Conditions

In general, the market for identification services in Indonesia are relatively low since most of the transactions in Indonesia still need a face-to-face mechanism with the customer.


This type of fintech will help the banking institutions to identify its customer through information technology. However, this type of fintech is not common in Indonesia since the only fintech to identify specific customers is Tanda Tangan Digital provided by Minister of Telecommunication and Information. This type of fintech will help to identify digital signatures. Such electronic signatures certified by Tanda Tangan Digital can be used to sign the digital documents, login and conduct an application transaction. 

Contributing Authors

Armand Yapsunto Muharamsyah & Partners (AYMP)

Arie Armand
Jakarta, Indonesia

Richard Yapsunto
Jakarta, Indonesia

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Chapter Index:

1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018