BI Regulates Fintech Industries

The development of technological and information systems has inevitably penetrated many sectors of the economy, including the financial sector. The combination of technology and the financial sector is commonly known as financial technology (“Fintech”) and most often manifests itself during payment transactions. In a bid to accommodate this new area, Bank Indonesia (“BI”) has issued Regulation No. 18/40/2016 on the Organization of Payment Transaction Processing (“Regulation 18/2016”). [1] Regulation 18/2016 sets out a set of comprehensive guidelines for the organization of payment systems involving Fintech, and these encompass of the following matters: