Open a Financial Company in Indonesia

Updated on Monday 16th July 2018

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Foreign entrepreneurs can open companies in various Indonesian economic sectors, one of the best-regulated ones being the financial industry. As a matter of fact, Indonesia is one of the most advanced Southeast Asian states in terms of financial technology, best known as fintech.

If you are a foreign investor and want to open a financial company in Indonesia, you can rely on our local consultants.
 

Legislation in the financial industry in Indonesia


As mentioned above, those who want to set up financial companies in Indonesia can rely on a strong legislation and on the strict supervision of the Financial Services Authority.
The main laws providing for the creation of a business in the financial industry in Indonesia are:
 
  •           the Banking Law which was enabled in 1992 and then amended in 1998;
  •           the Capital Markets Law which was enabled and enforced in 1995;
  •           the Pension Funds Law which dates back to 1992, like the Banking Act;
  •           laws No. 2 and No. 8 of 2008 and 2009 which provide for the creation of guarantee companies, respectively on financial institutions;
  •           the last law issued is Law No. 1/2013 which provides for the establishment of micro-finance institutions.

Foreign financial companies are also allowed to operate in Indonesia through subsidiaries and branch offices.
 

Requirements to open a financial company in Indonesia


The Indonesia company incorporation process of a business in the financial sector starts just like in the case of any other business, the only difference being the licensing phase and share capital requirements.

Financial companies offering banking services are divided into 5 categories, which influences the minimum amount of money required for obtaining the financial license. The share capital must represent a certain percentage of the value of the company’s assets which is calculated on a risk basis.
 

Activities of financial companies in Indonesia


The following activities can be carried out by financial companies in Indonesia:
 
  •           offering short and long-term loans and peer-to-peer loans, as well as factoring services;
  •           offering deposit and savings services – these services can also be offered by cooperatives;
  •           offering payment and transaction services, based on a payment system license;
  •           fintech companies can offer payment and peer-to-peer lending services.

For assistance in opening a financial company, please contact our company registration agents in Indonesia.

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