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Through progressive digital era, innovation tends to develop fast. This will also affect financial sector through various aspects. Since August 2018, National Finance Authority (commonly labeled as “OJK”) has established Financial Sectoral Law Number 13/POJK.02/2018 (“POJK 13/2018”). The aim of this regulation is to acknowledge current trends in digital finance innovation and Regulatory Sandbox to ensure a proper, safe, and beneficial platform for consumers. Through this recent regulation, there are several important aspects that shall be noted due to visible amendments. Hence, what are the changes and advantages within the existance of this sectoral regulation?

Brand New Mechanism on Registration

Specifically for the registrator of Digital Financial Innovation, which will include financial technology startups categorized as non-financial institutions, are directly linked toward OJK Infinity team. The request for registration will automatically goes to Regulatory Sandbox where OJK Panel Forum internally conduct analysis for bussiness model and technology assesment. This step is taken to weigh in the categorization of financial cluster within existing or possibility of a new cluster. OJK has recently acknowledges 16 digital financial clusters based on Article 4 POJK 13/2018. If  the result stated otherwise, then the business registrator will be labeled as new sample for OJK on considering the creation of additional cluster.

The registrator of Digital Financial Innovation that has gained registered status on OJK will goes through assesment process on Regulatory Sandbox. This phase will take around 18 (eighteen) months to gain acceptance status from OJK as registered financial technology company. Advanced process toward Regulatory Sandbox based on Article 11 POJK 13/2018 will be connected with assessment result which are divided into three types including recommended, need improvement, and not recommended.

Based on Regulatory Sandbox assessment result, there will be 3 (three) result possibilities:

  1. Recommended, means there are following steps that must be taken and continue the following process with request of registration or permit to OJK until fully gained registered status;
  2. Need Improvement, the registrator must revise and complete the process within 6 (six) months duration since gained the status; and
  3. Not Recommended, the registrator will never be permitted to ask for similar permit request and gets taken out from the entire process as The Registrator

Advantages for Digital Financial Platform

The establishment of POJK 13/2018 shall be seen as advantageous incentive towards Digital Financial Owners. Through Regulatory Sandbox process, every stakeholders who participated on this Digital Financial ecosystem can conduct early evaluation. The implementation of this system also offers the value of transparency to ensure proper measurement of responsibility.

Besides that, Regulatory Sandbox conduct which regulated by POJK 13/2018 also offers efficient risk management implementation. System of report and assessment are maintained synergically to give clearer picture for Digital Financial Business Owners and OJK as a part of business incubation step and ensuring synergism. Recent integration strategies through POJK 13/2018 can be seen as progressive step from government to boost economy growth through digital financial platforms. The existance of numerous advantages are important to be considered by every individual so that this momentum will not goes to waste and help the development of domestic financial sector.


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