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Regulation

OJK Issues POJK 3/2024 Related to Regulatory Sandbox

April 2, 2024

In response to the rapid development of financial technology (fintech), the Indonesia Financial Services Authority (OJK) has taken a significant step by issuing Financial Services Authority Regulation (POJK) Number 3 of 2024. This regulation governs the Implementation of Limited Trial Activities (Regulatory Sandbox) to encourage innovation in the financial services industry.

Background of Regulatory Sandbox

Regulatory Sandbox is a regulatory framework that allows fintech companies to test innovative products, services, or business models in a controlled environment with more flexible regulatory requirements. This concept has been adopted by various countries to encourage innovation while maintaining consumer protection.

Objectives of POJK 3/2024

This POJK aims to:

  • Encourage innovation in the financial services industry
  • Provide legal certainty for fintech industry players
  • Protect consumer and public interests
  • Support financial system stability

Scope of Regulation

The Regulatory Sandbox in POJK 3/2024 covers various innovative activities in the financial services sector, including but not limited to:

  • Digital payment technology
  • Peer-to-peer lending platforms
  • Robo-advisors for investment
  • Insurtech (insurance technology)
  • Blockchain and cryptocurrency