Bank Indonesia Selects a Company to be Part of Regulatory Sandbox

Bank Indonesia has selected PT Toko Pandai Nusantara to enter regulatory Sandbox. It is decided after considering the 8 criteria to be fulfilled by financial technology (fintech) players in accordance with Governor Board Regulation Number 19/14/PADG/2017 on Financial Technology's Preliminary Space (Regulatory Sandbox).

Currently, there are 15 fintech players already registered in BI. They are Cashlez Mpos, Pay by QR, Bayarind Payment Gateway, Toko Pandai, YoOk Pay, Halomoney, Saldomu, Disitu, PajakPay, Wallezz, Lead Generation, Netzme, Mareco Pay, and iPaymu.

Toko Pandai has a B2B business model for merchants and distributors providing store, customer, and cash management feature, provides access to products, digital service, and financial products.

Onny Widjanarko, BI's Department Head of Payment System Policy explained the regulatory sandbox is a safe trial space to test the fintech players along with its products, services, technology, and/or other business model.

"There are 25 [companies] already registered, which filtered into 15. Of those 15, a select company to enter regulatory sandbox is Toko Pandai," he said on Monday (4/2).

In addition, after registered in BI, a fintech company (to be reviewed) should include the elements of the payment system, innovation, and fully equipped with risk identification and mitigation.

Regulatory sandbox mechanism

Companies entering the regulatory sandbox are required to apply the consumer's safety, risk management, and prudential principles. They have to report to BI and follow the regulations.

The responsibilities are to provide facts and accurate data, information, and documents. Safety and reliability systems are used to run the preliminary products, services, technology, and/or business model in the regulatory sandbox.

During the regulatory sandbox implementation, BI will be assisting and reviewing. It will last for six months, but, if required, it's open for one-time extension up to six months. The preliminary status set by BI.

Successful preliminary will be followed by licensing, otherwise, the product will be prohibited.

Widjanarko confirms other registered company that has conformed with the criteria will be next in the pipeline.

The regulation is to create a healthy fintech ecosystem to support continuous and inclusive national economy growth by keeping monetary and financial stability, safer, easier, efficient, and reliable payment system.

– Original article is in Indonesian, translated by Kristin Siagian