ASIC continues making fintech ties, enters agreement with Indonesia

Elizabeth Barry 24 April 2017

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Indonesia will join Ontario, Kenya and the UK, all of which have signed fintech agreements with the regulator.

The Australian Securities and Investments Commission (ASIC) has entered into a Cooperation Agreement with Indonesia's Otoritas Jasa Keuangan (OJK) with the aim of promoting innovation and financial services in their respective markets.

This agreement is the latest in a long string for the Australian regulator, having already entered into agreements with the United Kingdom's Financial Conduct Authority in March 2016; the Monetary Authority of Singapore in June; the Capital Markets Authority of Kenya in October; and the Ontario Securities Commission in November.

The agreement with the OJK, signed on Friday in Melbourne, establishes a framework for cooperation between the two regulatory bodies as well as an agreement to share information on emerging market trends and regulatory issues in innovation.

Chairman of the OJK Pak Muliaman said: "I hope this further collaboration will be able to promote innovation in our financial service markets and to deepen engagement that can be used for financial sector development in both countries."

Indonesia has the largest economy in South-East Asia, and according to the Indonesia Fintech Report 2016, fintech players grew 78% in the 2015-16 period to between 135 to 140. The same report showed that the sector is dominated by payments (43%) followed closely by lending (17%).

ASIC Commissioner John Price said that this agreement is a further reflection of the deep ties between ASIC and OJK.

"Many fintechs are not constrained by national borders and it is fundamental that we leverage this to share views, exchange information and to discuss some of the challenges that this can create for fintech businesses and the community."

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