Functions and Roles of the Financial Services Authority in Supervising Financial Technology (Fintech) Service Activities in Indonesia

Abstract

The purpose of this research is to provide insights on how Fintech and the role of OJK in supervising the services of Fintech in Indonesia. The presence of Fintech in Indonesia greatly helps citizens in accessing and providing ease in financial transactions. At the moment, Fintech provides several functions that are believed to develop rapidly and Fintech also provides services on electronic money, virtual accounts, aggregators, lending, crowdfunding and other online monetary transactions. Various businesses that are part of Fintech are startups and online businesses. Therefore, the government should provide legal protection in order to protect both parties, the business organizers and the possible customers. In this case, business organizers with legal Fintech development have potential that is related to consumer protection, stable financial system, economy, and payment methods. The method of the research that is used in conducting this journal is the applied law research method. This research is using normative law with the facts approach and Constitution approach. In this case, Bank Indonesia has issued the Bank Indonesia Regulation No. 18/40/PBI/2016 concerning the implementation of the payment transaction and the Bank Indonesia Regulation No. 19/12/PBI/2017 about the implementation of Financial Technology. Along with OJK Regulation No. 13/POJK.02/2018 about the innovation of digital money in the financial services sector as a provision that covers the supervision and provisions of the financial technology (fintech) industry issued by the Financial Services Authority (OJK).