The Financial Services Authority of Indonesia or Otoritas Jasa Keuangan ("OJK"), has introduced a new regulation on peer-to-peer lending, commonly known as P2P lending. The purpose of this regulation is to promote the optimal and healthy growth of the P2P lending industry and meet OJK's requirements for effective and efficient supervision.
This new regulation introduced several new concepts in P2P lending by enhancing OJK's supervision through market conduct, and rescinded several provisions in the previous regulation on lending limits, paid-up capital and equity minimum requirements, and the licensing process. The regulation also tightens control over P2P lenders by making them go through a fit and proper test and requiring them to have and identify a controlling shareholder.
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