Indonesia: Implemented regulation including licensing requirement for digital banks

On 30 October 2021, the regulation creating a licensing requirement for "digital banks" by the Indonesian central bank (12/POJK.03/2021) enters into force. 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.