There are already 15 fintech startups registered in Bank Indonesia
Bank Indonesia has named fintech startup PT Toko Pandai Nusantara (Toko Pandai) into its regulatory sandbox programme. Being the first startup listed in the sandbox, Toko Pandai was chosen by the central bank for being able to fulfill all eight criteria of a fintech service provider, as determined by Governor Council Regulation No. 19/14/PADG/2017 on Fintech Regulatory Sandbox.
At the moment, in addition to Toko Pandai, there are already 15 fintech services provider registered in Bank Indonesia such as Cashlez Mpos, Pay by QR, Bayarind Payment Gateway, YoOk Pay, Halomoney, Saldomu, Disitu, PajakPay, Wallezz, Lead Generation, Netzme, Mareco Pay, and iPaymu.
Toko Pandai implements a B2B business model aimed to help retailers and distributors by providing cash, customer relation, and store management features that opened access to various digital financial services and products.
Onny Widjanarko, head of the payments system regulatory department at Bank Indonesia, explained that the regulatory sandbox is a safe, restricted space to test out products, services, technologies, or business models that have fulfilled the criteria of a fintech service provider.
“At the moment there are 25 companies in the process of registering [to Bank Indonesia]; 15 companies have already been registered. Out of the 15 [registered] companies, Toko Pandai was chosen to enter the regulatory sandbox,” Widjanarko said on Monday.
He added that in order to make it to the regulatory sandbox, apart from having to be registered in Bank Indonesia, a fintech startup must have an element in their business that falls into the payment systems category. It also has to include innovation in its business, is able to be utilised by the mass, is completed with risk identification and mitigation, and other important points as determined by Bank Indonesia.
Regulatory sandbox mechanism
Companies that have been listed into regulatory sandbox are obliged to ensure the implementation of customer protection and risk management principles. They are obliged to submit report on both regular and by-request testings, and obey all regulations.
The startup is also responsible to provide accurate data, information, and documentation to Bank Indonesia. The safety and security of the system that is being implemented on its products, services, technologies, or business models are being tested in the regulatory sandbox.
During testing period, Bank Indonesia will monitor and review the process to determine the status of the test results. The testing period is for six months though it is able to be extended for a maximum another six months.
After the six-month testing period, Bank Indonesia will determine the status based on reviews of the whole process. There are three possible statuses that can be bestowed upon a startup: Successful, not successful, and others.
Once succeeded, the startup can proceed with the licensing process. Startups that have failed to go through the review process will not be allowed to market its products.
Widjanarko stressed that registered companies that have fulfilled all the criteria to enter the sandbox programme will “fall within Bank Indonesia’s radar.”
The initiative is meant to support a healthy fintech ecosystem for a sustainable and inclusive national economy, by considering monetary stability, financial system stability, and the implementation of a safe, secure, and reliable payments system.
The article Bank Indonesia Tetapkan Satu Perusahaan Masuk Regulatory Sandbox was written by Marsya Nabila for DailySocial. English translation and editing by e27.
The post Bank Indonesia listed fintech startup Toko Pandai in its regulatory sandbox appeared first on e27.