New rules set to shake up Indonesia's digital economy

Guidelines allow 99% foreign ownership in a local lender but increase capital requirements to 6 trillion rupiah

Published Tue, Sep 7, 2021 · 05:50 AM

Jakarta

A NEW battleground is opening up in Indonesia's digital economy with the latest guidelines from the Financial Services Authority (OJK) aimed at pushing greater financial inclusion among the country's population of 270 million.

The new rules, which allow 99 per cent foreign ownership in a local lender but increase capital requirements to six trillion rupiah (S$566 million), will also likely force a greater consolidation of the sector that is currently dominated by many small lenders.