Indonesia: Adopted regulation including licensing requirement for digital banks

On 30 July 2021, the Indonesian central bank issued a regulation creating a licensing requirement for "digital banks" (12/POJK.03/2021). A digital bank is defined as a payment provider that offers its services digitally without needing a physical office. Digital banks have to fulfill a capital requirement of IDR 10 million and further have to demonstrate online safety guidelines, a business model that incorporates technological developments, proper data storage, and appropriate risk management capabilities.