Canada    FinTech Guide    Chapter 5    Indonesia


5. Crowdfunding / Crowdinvesting / Crowdlending
Indonesia  Indonesia

Currently Indonesian millennials are highly engaged with social programs or social campaigns. It may be quite hard obtaining loans from Indonesian banks to finance a social project, considering its nature and strict procedure. Following the issuance of the recent BI Regulations on Fintech near the end of 2017, it indicates that the regulator is starting to allow the growth of financial technology in crowd funding through some assessment and certain procedures (as explained in “Legal affair” section).



Legal Affairs


Under the BI Regulations on Fintech, any financial technology operator that fulfills the category as “Financial Technology” shall be required to have itself registered to BI pursuant to BI Regulations on Financial Technology. The activity of financial technology operator includes, among others loan, financing and capital provision. Furthermore it was mentioned under BI Regulations on Fintech the example of financial technology in the form of loan, financing and capital provision shall be peer-to-peer lending and crowd funding.

Considering that the fintech that conducts crowd funding activity in this section may be fit with the examples provided in the BI Regulations on Fintech, then such business player need to firstly register to BI as financial technology operator and follow the determined procedures i.e. registration, Regulatory Sandbox and licensing.

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



Economic Conditions


In general, the market for crowdfunding services is relatively high, considering the number of Indonesian people has reached more than 250 million people and the high awareness of campaign and social movements in some big cities in Indonesia.

Many crowdfunding companies are emerging in the market, such as:


  • Wujudkan.com
  • Ayopeduli.com
  • GandengTangan.org
  • WeCare.id
  • Indves.com
  • GandengTangan.org
  • LimaKilo.id
  • igrow.asia
  • Iwak.me
  • Mapan
  • KapitalBoost.com


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)

Disclaimer:
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