REPUBLIKA.CO.ID, YOGYAKARTA -- Bank Indonesia (BI) has expressed readiness to launch regulations to support the development of the financial technology industry (fintech) in the fourth quarter of 2017.
"BI regulations regarding financial technology industry can be released in the fourth quarter of 2017, along with regulatory sandbox," BI senior deputy governor Mirza Adityaswara stated here on Monday.
A regulatory sandbox is one in which fintech firms can test any service they want to offer to consumers under the supervision of the authority before it issues further regulations.
He noted that the regulations could support the development of financial technology and provide directions to digital industry players in order to provide adequate financial services to the community.
"We will prepare the regulations and the environment needed to develop digital economy," he revealed.
He remarked that the financial technology regulations would provide an opportunity for startup businesses to launch innovative products, services, and business models.
"This regulation is needed for the startup actors to perform limited activities after meeting the criteria of BI," he explained.
Mirza noted that through the regulations, BI could provide full support for the development of financial technology, especially for financial services.
"In addition, BI can monitor and observe the development of financial technology from time to time through the implementation of the sandbox," he revealed.
Based on data, the transaction value of the financial technology industry in Indonesia was recorded at US$15.02 billion in 2016, growing 24.6 percent from the previous year.
Meanwhile, the total value of transactions in the financial technology market in 2017 is estimated to reach $18.65 billion.
Based on data acquired by the Boston Consulting Group, the predicted population of middle-class and affluent customers (MAC) in Indonesia would reach 141 million, or approximately 64 percent of the country's current population, by 2020.