It’s been seven months since the Indonesian government issued regulations for the peer-to-peer (P2P) lending industry, and the mood in the sector is optimistic. The regulations, which were developed over a period of several months and included input from Indonesian fintech startups, spelled out ground rules about the size of the loans P2P platforms could issue and limitations on foreign ownership. The regulations had a clarifying effect for both local companies and foreign enterprises, said Aji Suleiman, executive director of public policy at Financial Technology Indonesia.
Suleiman predicted that foreign companies such as Ant Financial and Tencent will make substantial moves in the Indonesian fintech space in the coming months. But for the time being, Suleiman said the market is dominated by local companies that engaged with regulators as the guidelines were being created and were primed to grow once the legal structure was in place.