In today’s digital age, the financial services industry is witnessing a revolution with the rise of fintech peer-to-peer (P2P) lending platforms.
Bali, Indonesia, offers a unique opportunity for foreign entrepreneurs to tap into this burgeoning market by founding a conventional fintech P2P lending business under the KBLI code 64951.
This business category encompasses information technology-based lending services that facilitate direct loan agreements between lenders and borrowers through an electronic system, using the internet network.
The scope encompasses providing, managing, and operating financial services to connect lenders with borrowers for conventional peer-to-peer lending in Indonesian rupiah.
Overview
This sector covers the business of money lending services based on information technology (Fintech P2P Lending) that operates conventionally.
The business activities include the provision, management, and operation of financial services that facilitate direct connections between lenders and borrowers through electronic systems using the internet, specifically for lending and borrowing Indonesian Rupiah.
Legal Basis
The operations of conventional financing companies are regulated under Indonesian financial services law, primarily overseen by the OJK.
These regulations ensure that all financial activities are conducted in a controlled and secure manner, adhering to the standards set by the government to protect both the businesses and their clients.
Type of License
The business requires a specific operational license from the Financial Services Authority (OJK). This is essential for conducting activities within the scope of conventional Fintech P2P lending.
Coverage of Service
The service covers the provision, management, and operation of financial services specifically aimed at matching lenders with borrowers for the purpose of conducting direct lending transactions in Indonesian Rupiah through electronic systems utilizing internet connectivity.
Business Scale, Land Area, and Risk Level
The conventional Fintech P2P lending business is considered a large enterprise, indicating its significant scale and potential impact within the financial sector.
There are no specific regulations governing the land area required for these types of operations, providing flexibility in terms of physical office space.
However, the nature of financial lending, especially in the technologically driven P2P sector, categorizes this business as high risk.
This classification is due to the inherent risks associated with financial transactions and lending over electronic platforms.
Authorities Granting Licenses
The primary authority responsible for issuing licenses for Fintech P2P lending businesses is the Financial Services Authority (OJK), which regulates financial institutions and their operations.
Requirements and Obligations for Business Licensing
The process of obtaining a business license for a conventional Fintech P2P lending business involves several critical steps overseen by the Financial Services Authority (OJK).
Initially, companies must obtain a Business Identification Number (NIB) through the Online Single Submission (OSS) system.
Subsequent business licensing applications are to be submitted directly to the OJK, which will also issue the license based on compliance with established financial regulations.
Businesses are required to meet all regulatory obligations as determined by the OJK, ensuring that their operations align with national financial laws and safety standards.
This includes adhering to guidelines on financial transparency, consumer protection, and operational integrity.
Frequently Asked Questions
- What defines a conventional fintech P2P lending business under KBLI Code 64951?
A conventional fintech P2P lending business under KBLI Code 64951 is defined as a financial service that utilizes information technology to facilitate direct lending and borrowing of Indonesian Rupiah between lenders and borrowers through an electronic system using the internet.
- What are the main activities involved in operating a conventional fintech P2P lending business in Bali?
The main activities involve providing, managing, and operating financial services that connect lenders with borrowers directly, ensuring smooth transactions and adherence to financial regulations.
- How does a foreign-owned company obtain a business license for operating a fintech P2P lending service in Bali?
Foreign-owned companies must first obtain a Business Identification Number (NIB) through the Online Single Submission (OSS) system, followed by applying for a specific operational license from the OJK.
- What potential impact does a foreign-owned fintech P2P lending company have on Bali's financial sector?
A foreign-owned fintech P2P lending company can significantly impact Bali's financial sector by introducing innovative financial services, increasing competition, and providing alternative lending solutions to the market.
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