Profile of Indonesia Fintech

Association (AFTECH)

Prepared by Asosiasi Fintech Indonesia

About AFTECH

Indonesia Fintech Association (AFTECH), a Self-

Regulatory Organization (SRO) for Digital Financial

Innovation players in Indonesia and an umbrella

organization for all fintech verticals in Indonesia

Our Vision and MissionVision

To support Indonesia’s financial inclusion through digital

finance innovation

Mission

To support financial inclusion targets in accordance with the

National Strategy of Financial Inclusion (SNKI) by increasing

access, use and quality of financial services (Target: 90% in

2023)

Prepared by Asosiasi Fintech Indonesia

History

October 2019

23-24 September

2019

9 August 2019

July 2016

May2016

March 2016

October 2015

September 2015

March 2015

Public Launch

Courtesy Meeting with the Chairman of the OJK Board of Commissioners and starting regular meeting sessions

Officially a Legal Entity of an Incorporated Association and registered with the Republic of Indonesia Ministry of Law and Human Rights

Membership Admissions to the Public

Courtesy Meeting to the BI Governor and starting regular meeting sessions

Received a Letter of Appointment No S-2/D.02/2019 from OJK as a Self-Regulatory Organization (SRO) for Digital Financial Innovation players

1st Indonesia Fintech Summit & Expo with BI and OJK

Received grant from Bill & Melinda Gates Foundation

Starting from the Fintech community meetings

AFTECH Architecture

Vision: To support Indonesia’s financial

inclusion through digital finance innovation

Mission: To support financial inclusion targets in accordance with the National Strategy of Financial

Inclusion (SNKI) by increasing access, use and quality of financial services (Target: 90% in 2023)

Cro

ss Asso

ciatio

n P

artn

ersh

ip

IFPPIndonesia Fintech Public Policy

(Regulator Mediation and Advocacy)

IFCC

Indonesia Fintech

Community Collaboration

IFLEIndonesia Fintech

Literacy and Education

IFKI

Indonesia Fintech

Knowledge & Intelligence

FinTech Research Portal |

FinTech Big Data

Government, Regulator

Regulation| Kebijakan

Payment of Financial

Inclusion | Lending

Government, Industry

Kemitraan | Collaboration

Working Group | Expert Gym |

Expert Lab

Public and Media

Literation| Education

FinTech Talk | Media Tour

Journalist Class | Fintech Fair

All Stakeholders

Research | Data

Social Media Communication and Digital Marketing

Kn

ow

led

ge

Pa

rtn

ers

hip

Prepared by Asosiasi Fintech Indonesia

Profile of AFTECH Members

Composition of AFTECH members until the end of March 2020

P2P Lending, 43%

Payment, 18%

Market Provisioning, 5%

Equity Crowfunding, 3%

Wealth Management, 4%

Insuretech, 2%Enabler, 5%

Digital Financial Innovation, 16%

Founded by 6 fintech players in 2016, AFTECH

has more than 346 members that include:

• 307 fintech start-ups from 24 business verticals,

• 24 financial institutions

• 5 technology partners

• 4 university partners

24

79

178

275

307

2016 2017 2018 2019 2020 (Q1)

TOTAL OF AFTECH MEMBERS: FINTECH START-UPS CATEGORY (2016 - Q1 2020)

Current Fintech Start-ups Current Fintech Start-ups Business Models (Vertical)

Digital Financial Innovation

Payment

ECF

Wealth Management

P2P

Fintech Agent Enabler

AFTECH Activities

AFTECH Role as a Self-Regulatory Organization (SRO) for Digital Financial Innovation (IKD) Players (POJK No.13/POJK.02/2018)

Prepared by Asosiasi Fintech Indonesia

7. Updating

member

database

5. Receive

and forward

reports and

complaints

8. Become a

liaison between

OJK and

members to

improve

regulatory

support and

information

exchange

9. Carry out

education and

training;

consumer

protection; and

domestic and

international

cooperation

2 Develop

industry

standards in

general and

specifically for

each IKD

business

model

11. Prepare

evaluation

periodically

(every 6

months)

6. Compile

financial

statistics and

risk monitoring

as well as

research on

macro and

micro financial

issues4. Develop

strategies and

improve IKD

ecosystem

1. Formulate code

of conduct in

accordance with

each IKD business

model

3. Develop

strategies and

human resource

development

10. Monitor

members

business

performance

and market

supervision

12. Updating

data (related to

association

operations)

Indonesia Fintech Public Policy (IFPP): Current Working Group (WG) AFTECH

Prepared by Asosiasi Fintech Indonesia

• Establish industry standards and thought leadership

• Encourage industrial growth & sustainability

• Provides blacklist data• Encourage collaboration

between capital markets and fintech companies

• Policy clarity regarding the use of VA & other payment instruments for investment product transactions

Financial Identity &

Privacy

• Encourage a Digital ID system that is conducive to the fintech ecosystem growth in Indonesia

• Data privacy and data security standards for the fintech industry

Taxation

Fraud Sharing Database

• Achieve equality of VAT treatment for fintech

• Advocating tax incentives to users and merchants to encourage adoption of fintech

Wealth Management Equity Crowdfunding IKD Credit Scoring

• Encourage the growth of fintech credit scoring to increase access to funding for unbanked and underbanked

Bank IndonesiaSNKI OJK

(DJP Kemenkeu)

Digital Financial Service Innovation (IKD): Aggregator• Improve regulatory

certainty for IKD Aggregator players

• OJK Regulatory Sandbox

OJK Capital Market OJK IKDOJK IKD

Agent Network

• Collaboration to improve agent network (LKD/Lakupandai) access to non-bank services/products

Payments

• Regulation certainty in the implementation of BSPI 2025

• Regulation certainty for payment system business model (PBI PTP, PBI E-money, PBI Tekfin)

G2P Payments

• Encourage fintech participation in the distribution of government stimulus payments (G2P) through fintech

Indonesia Fintech Public Policy (IFPP): Current Working Group (WG) AFTECH

Prepared by Asosiasi Fintech Indonesia

• Establish industry standards and thought leadership

• Encourage industrial growth & sustainability

• Provides blacklist data• Encourage collaboration

between capital markets and fintech companies

• Policy clarity regarding the use of VA & other payment instruments for investment product transactions

Financial Identity &

Privacy

• Encourage a Digital ID system that is conducive to the fintech ecosystem growth in Indonesia

• Data privacy and data security standards for the fintech industry

Taxation

Fraud Sharing Database

• Achieve equality of VAT treatment for fintech

• Advocating tax incentives to users and merchants to encourage adoption of fintech

Wealth Management Equity Crowdfunding IKD Credit Scoring

• Encourage the growth of fintech credit scoring to increase access to funding for unbanked and underbanked

Bank IndonesiaSNKI OJK

(DJP Kemenkeu)

Digital Financial Service Innovation (IKD): Aggregator• Improve regulatory

certainty for IKD Aggregator players

• OJK Regulatory Sandbox

OJK Capital Market OJK IKDOJK IKD

Agent Network

• Collaboration to improve agent network (LKD/Lakupandai) access to non-bank services/products

Payments

• Regulation certainty in the implementation of BSPI 2025

• Regulation certainty for payment system business model (PBI PTP, PBI E-money, PBI Tekfin)

G2P Payments

• Encourage fintech participation in the distribution of government stimulus payments (G2P) through fintech

Prepared by Asosiasi Fintech Indonesia

Government Agencies

International OrganisationsUniversities, Knowledge Partners, Research Partners

Note – Non-Exhaustive list

Industry Associations

Foreign Fintech Associations

11

Strategic Partnership: Indonesia Fintech Community Collaboration

https://www.google.com/imgres?imgurl=https://media.mehrnews.com/d/2018/02/12/4/2715829.jpg&imgrefurl=http://www.tehrantimes.com/news/421192/JICA-funds-medical-environment-projects-in-Iran&docid=J-8cu7ncHwGciM&tbnid=XB5LxK7LE6GrsM:&vet=10ahUKEwj16sfo2Y7mAhWSaCsKHZYTDwgQMwhtKAQwBA..i&w=768&h=576&safe=strict&bih=747&biw=1536&q=jica&ved=0ahUKEwj16sfo2Y7mAhWSaCsKHZYTDwgQMwhtKAQwBA&iact=mrc&uact=8https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwiI6dTdiInmAhWa7nMBHRR9CQ8QjRx6BAgBEAQ&url=https://www.perbanas.ac.id/index.php/id/content/sejarah&psig=AOvVaw3dAZ-0YRHCX4Ko1_z5U_Mu&ust=1574898617197363https://www.google.com/imgres?imgurl=https%3A%2F%2Fwww.womenomicscph.dk%2Fwp-content%2Fuploads%2F2017%2F12%2Fwomenomics-partners-mckinsey-1030x539.png&imgrefurl=https%3A%2F%2Fwww.womenomicscph.dk%2Fpartner%2Fmckinsey-company%2F&docid=zQ59vgk2_JxEGM&tbnid=Qyp2Wy4yug6gTM%3A&vet=10ahUKEwjRpu3K2ZbmAhWEYysKHX0TBFAQMwhEKAIwAg..i&w=1030&h=539&safe=strict&bih=607&biw=1280&q=mckinsey&ved=0ahUKEwjRpu3K2ZbmAhWEYysKHX0TBFAQMwhEKAIwAg&iact=mrc&uact=8https://www.google.com/imgres?imgurl=https%3A%2F%2Flookaside.fbsbx.com%2Flookaside%2Fcrawler%2Fmedia%2F%3Fmedia_id%3D174053049305057&imgrefurl=https%3A%2F%2Fwww.facebook.com%2Fprasmul%2F&docid=OO2Z_g0oEBK9KM&tbnid=4fKv7i8vHid-FM%3A&vet=10ahUKEwjFzLLe2ZbmAhXCX30KHbRCAToQMwhKKAUwBQ..i&w=931&h=931&safe=strict&bih=607&biw=1280&q=prasetiya%20mulya&ved=0ahUKEwjFzLLe2ZbmAhXCX30KHbRCAToQMwhKKAUwBQ&iact=mrc&uact=8https://www.google.com/imgres?imgurl=https%3A%2F%2Fupload.wikimedia.org%2Fwikipedia%2Fcommons%2F0%2F05%2FPricewaterhouseCoopers_Logo.svg&imgrefurl=https%3A%2F%2Fid.wikipedia.org%2Fwiki%2FPricewaterhouseCoopers&docid=L-cPsnL-fz4slM&tbnid=8_eM-U2cG9AoQM%3A&vet=10ahUKEwi5hc2L25bmAhXFdCsKHSe_ASkQMwhHKAAwAA..i&w=1000&h=759&safe=strict&bih=607&biw=1280&q=pwc&ved=0ahUKEwi5hc2L25bmAhXFdCsKHSe_ASkQMwhHKAAwAA&iact=mrc&uact=8

Prepared by Asosiasi Fintech Indonesia

Improving Public Literacy on Digital Financial Services: Indonesia Fintech Literacy and Education

Fintech Handbook Socialization Activities in the Region

Literacy Programs with the Government

Routine Activities for the Public

Prepared by Asosiasi Fintech Indonesia

Annual Members Survey & White Papers: Pilar Knowledge Hub & Intelligence

✓Sejak tahun 2016, AFTECH secara konsistentelah melakukan survei terhadap seluruh

anggotanya guna mengetahui tren dan

perkembangan industri terkini

✓Terkait dengan penelitian tentang isu makrodan mikro keuangan, melalui pokja-pokjanya

AFTECH telah bekerjasama dengan

knowledge partners (seperti: McKinsey,

Deloitte, PwC, World Bank, ADB, Accenture,

dll) dalam menghasilkan white papers.

Prepared by Asosiasi Fintech Indonesia

Market Supervision: Fintech Code of Ethics & Industry Standards

Basic principles (Code of Ethics):

1. Product Transparency and Method

2. Product Offering

3. New Product Risk Management

4. The principal of good faith

Product Transparency and Method

Product Offering

• Information disclosure regarding public

rights & obligations, costs, risks to users,

and fund management.

• Complaints service information

New Product Management Risk

• The precautionary principles

• Prohibition of product offerings without

the agreement of the parties, disclosure

of risk information for users and related

to fund management

• Complaints service information

The principal of good faith

• Good faith in the imposition of

requirements and fees & handling of

personal data

• Use of third-party services supporting the

IKD ecosystem

• Prohibition of the use of physical and

mental violence

• Obligation to support financial literacy

and inclusion programs

General Provisions & Basic Principles

Fundamental Principles (1)

Fundamental Principles (2)

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