Obtaining Fintech P2P Lending License – In Indonesia, Fintech is one of the most popular businesses for start-ups. But, the current fintech lending companies, for example, so many of them are still illegal, so only 127 companies are registered based on the latest information from Financial Services Authority of Indonesia (OJK) in their database. Usually, the ones who haven’t registered their fintech will give borrowers a high penalty for late payment without prior notice. Therefore, before starting their activities, companies must obtain a license first. At least you have to fulfill all the procedures so you can obtain fintech peer to peer (P2P) lending license will be briefly gathered such as follow:

• The provider will be considered as Other Financial Services Institutions
• The provider entity has to be Perseroan Terbatas (PT) or Union (Koperasi)
• The PT can be owned either by Indonesian individual and/or Indonesian legal entity and/or foreign individual/foreign entity (maximum share foreign-ownership of 85%)
• The minimum paid-up capital for registration should be IDR 1 billion, both for PT and Koperasi
• The provider also must have a paid-up capital or basic contribution of minimum IDR 2,5 billion when obtaining the license
• The provider will provide, maintain and operate the P2P lending between investors and borrowers that the fund is sourced from the investor themselves
• The maximum amount can be lent to a customer is IDR 2 billion
• The provider is required to use escrow and virtual account
• The interest charges should be at a 0,8% per day flat rate with a penalty fee at 100% of the loan principal value

After all the requirements are fulfilled, the provider has to register their fintech to OJK and get the approval maximum 10 days after the submission. All providers who already registered need to report their activities every 3 months and apply for the license maximum 1 year after the registry date. OJK will inform if the application is approved or rejected by a maximum of 20 days since the submission date.

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