The Indonesian Financial Services Authority (“OJK“) has taken a significant leap in integrating information technology into collaborative financing services with its Circular Letter No. 19/SEOJK.06/2023 (the “Regulation“),1 which came into effect on 8 November 2023. The Regulation aims to encourage financial institutions to harness technology for innovation, highlighting its potential to drive financial inclusion and expand services to a broader audience.
This Regulation applies to any Indonesian legal entity which operates a digital platform that unites fund providers and fund recipients for funding transactions. The Regulation addresses various key aspects of collaborative financing, one of which is, users’ data and information management. The Regulation states that the operator can only access, obtain, store, manage, process and/or use users’ personal data with consent – bringing collaborative financing in line with the general regulatory regime relating to personal data protection.
1 The Indonesian Financial Services Authority (OJK) Circular Letter Number 19/SEOJK.06/2023 regarding the Implementation of Collaborative Financing Services Based on Information Technology.
