Bank Indonesia to launch fintech office

Bank Indonesia has announced that it will launch a fintech office next month, which would be designed to facilitate fintech players to build networks.

According to reports by TheJakartaPost, the fintech office will have a regulatory sandbox where firms and startups can test their services prior to launching. By using the sandbox as a tool, regulators can facilitate innovation and test policies slated to be issued.

"Next month we will launch a fintech office. BI will establish a special task force that will coordinate with other fintech offices," Ronald Waas, deputy governor, Bank Indonesia (BI) stated in Semarang, as reported by Jakarta Post.

Business players use the regulatory sandbox in order to test innovative products and business models. The move comes after Indonesian fintech companies in payment services began to offer e-wallets, online payment services and interbank transactions free of charge.

Previously, the central bank and the Finance Services Authority (OJK) revealed plans to issue rules by the end of 2017 to regulate fintech players' activities.

Last month, the Indonesian Chamber of Commerce and Industry (Kadin) urged the Indonesian government to facilitate fintech services by giving fiscal incentives and regulations in a move to enhance financial efficiency.