Indonesian regulators struggling to keep pace with the mushrooming fintech startups operating without a license have turned to the police and public for help in tracking them.
The Financial Services Authority, known as OJK, has shutdown 826 illegal startups this year alone, Tongam L. Tobing, chief of investment watchdog at the regulator, told reporters in Jakarta on Friday. These firms operated across platforms such as websites, mobile apps and social media, making it difficult for authorities to detect them, he said.
Indonesia, home to more than 260 million, has emerged as a prized market for fintech startups as about 90% of its population don’t carry credit cards and majority has no access to formal banking services. The nation’s internet economy is the fastest growing in the region and is poised to expand to $100 billion by 2025, according to a report by Google and Temasek Holdings Pte.