In 2024, Indonesia’s fintech scene will reach new heights and one of its top highlights is: This milestone marked a pivotal moment for the country’s financial inclusion efforts.
From regulatory changes to technological advancements, here are our picks for Indonesia’s top fintech stories of 2024 that shaped the country’s fintech landscape.
Investree CEO Adrian A. Gunadi resigns amid fraud allegations and company challenges
Investree co-founder and CEO Adrian A Gunadi resigned on January 31, 2024 following allegations of misconduct and ongoing challenges at the company. In his resignation letter, Gunadi said his decision was final and he had no further claims against the company.
document reviewer deal street asia suggested Gunadi Admitted diverting company funds to personal accounts and using Investment as guarantor for personal business.
Due to growing dissatisfaction among shareholders, an extraordinary general meeting was held and Sales Manager Salman Baharuddin was proposed as Gunadi’s successor.
Despite securing a US$231 million Series D funding round in October 2022 led by Qatar’s JTA International Holdings, Investi was facing severe liquidity issues at the same time. Delays in cash disbursements and struggles to cover operating costs raised investor concerns about the company’s financial stability.
Southeast Asian stock exchanges including IDX collaborate on new ESG initiative
Indonesia Stock Exchange (IDX) partners with Bursa Malaysia, Stock Exchange of Thailand (SET) and Singapore Exchange (SGX Group) to launch ASEAN Interconnected Sustainability Ecosystem (ASEAN-ISE) I did. The initiative aims to promote sustainable development across ASEAN by aligning environmental, social and governance (ESG) indicators.
At a meeting in February 2024, both exchanges formalized their cooperation by establishing a governance structure and operational plan. Bursa Malaysia will serve as the ASEAN-ISE Secretariat to ensure the smooth implementation of this initiative and advance its goals.
ASEAN-ISE strives to create an integrated ESG ecosystem that promotes sustainability, reduces costs, and enables faster market access for member exchanges. ESG-compliant companies will benefit from greater business value through enhanced disclosure and streamlined processes.
the current novemberASEAN-ISE, of which the Philippine Stock Exchange is currently a member, has decided to issue a Request for Information (RFI) to identify customized solutions to advance efforts towards its goals over the next three years. It was decided jointly.
The RFI outlines a proposed framework for an ASEAN-ISE integrated data infrastructure focused on creating an interconnected ecosystem for seamless ESG data exchange. The framework aims to establish a sustainable operating model that enhances market access while prioritizing ESG principles.
OJK strengthens oversight of cryptocurrencies with new regulatory sandbox mandates
The Indonesian Financial Services Authority (OJK) has made it mandatory for all financial institutions launching new products, including crypto-related products, to participate in a regulatory sandbox.
The framework aims to foster innovation while ensuring robust risk management and responsible technological progress in the financial sector.
Hasan Fawzi, CEO of Financial Sector Innovation and Cryptoassets at OJK, emphasized the importance of sandboxes in preventing fraudulent schemes and strengthening consumer protection.
Any product or business model that cannot pass sandbox approval is considered illegal.
this regulatory changes This is in line with the Financial Sector Development and Strengthening Act (UU P2SK), which transferred the supervision of crypto assets from the Commodity Futures Trading Supervisory Authority (Bappebti) to the OJK.
Secures additional USD 73 million investment from superbanks, Grab, Singtel and KakaoBank
In our next top Indonesian fintech article for 2024, we’ll cover how Indonesia’s digital bank Superbank secured additional funding of Rp 1.2 trillion (US$73.3 million) from shareholders Grab, Singtel and KakaoBank. This new investment is aimed at strengthening Superbank’s services and developing innovative financial products that meet the diverse needs of its customers.
Superbank has become the first Indonesian bank to enable millions of Grab users and partners to open accounts, save and make payments directly through the Grab app. This integration eliminates the need for additional apps and demonstrates the bank’s commitment to accessible digital banking solutions.
Superbank’s major shareholders include Mtech Group, which holds 34.58% of the company’s shares. Next is Grab with 21.29%, Singtel with 18.93% and KakaoBank with 10%.
This partnership not only offers Superbank; financial backing But also access to advanced technology, industry expertise, and an extensive network. Superbank President Director Tigor M. Siahan said Superbank plans to use the funds to expand comprehensive financial services with a focus on Indonesia’s underbanked communities and MSMEs. said.
OJK releases digital finance and cryptocurrency roadmap 2024-2028
Our final selection of Indonesia’s top fintech stories of 2024 focuses on the launch of the Indonesian Financial Services Authority’s (OJK) 2024-2028 roadmap. This roadmap aims to promote the development and enhancement of digital financial assets, financial sector innovation, and crypto assets.
The roadmap, titled “Welcoming the future of digital finance: Building the foundations for effective and balanced supervision,” was announced at the OJK Digital Finance Innovation Day in August 2024.
The roadmap, led by OJK Chairman Mahendra Siregar and key officials Hasan Fawzi and Agusman, focuses on four pillars: regulation and development, supervision and enforcement, licensing, and information and innovation. Masu.
These pillars aim to build a robust, inclusive and sustainable digital financial ecosystem in Indonesia.
The implementation will follow nine strategic programmes, including regulatory frameworks, digital innovation centres, pilot projects and financial literacy initiatives. Collaboration with government agencies, industry stakeholders, and the public is essential to achieving the roadmap goals.
Regular evaluations ensure progress and necessary adjustments are made. of road map It also marks the first anniversary of the establishment of the IAKD Supervisory Department, which drives innovation and digital transformation in Indonesia’s financial environment.
A crucial year for Indonesia’s fintech revolution
From the resignation of the Investree CEO amid the financial crisis to groundbreaking ESG collaborations across Southeast Asia, the year brought both challenges and opportunities for the industry.
The regulatory review, particularly the OJK’s increased oversight of crypto assets and new sandbox frameworks, suggests a more structured approach to fintech innovation, balancing risk and progress.
The publication of the 2024-2028 roadmap by OJK puts Indonesia further on a clear path towards a robust and inclusive digital financial ecosystem.
By integrating advanced regulations and a sustainable growth model, Indonesia’s fintech market has regional as well as global influence, creating fertile ground for innovation and investment in the coming years. Masu.
Featured image credit: Edited from freepic
