The Role and Authority of the AFPI
AFPI is an organization that facilitates peer to peer lending or online funding fintech businesses in Indonesia. AFPI has been appointed by the OJK as the official association of information technology based lending and borrowing service providers in Indonesia, based on letter No. S-5 / D.05 / 2019.
All business practices of AFPI members must refer to the association rules overseen by the Ethics Committee. The AFPI architecture consists of code of conduct, policy advocacy, literacy and education, data knowledge and intelligence and collaboration. To anticipate fraud from fintech, AFPI has implemented standardization and certification for the billing process. AFPI prohibits misuse of customer data and the relevant fintech is obliged to report billing procedures. AFPI also applies the Fintech Lending Risk Management Certificate and updates Risk Management in Industry 4.0 for all its members.
According to the Head of Institutional and Public Relations Division of AFPI, the granting of the permit indicates the credibility of the P2P Lending industry itself. He hopes in the future by granting this permit can increase the trust of the public, especially P2P Lending fintech business investors. Fintech lending business models can be in the form of micro, small and medium enterprises (MSME) financing, retail, consumptive, or credit sales.
OJK Tightens P2P Lending Registration
The OJK has added registration requirements for peer to peer lending as a step to tighten fintech selection. The tightening system took the form of certification following a seminar held by AFPI. The seminar included briefing on prospective P2P Lending providers addressed to shareholders, company directors and commissioners. This seminar must be followed by them without exception.
In the seminar, each company will be equipped with a number of materials from the ranks of regulators and other stakeholders ranging from the OJK, the Ministry of Communication and Information, Criminal Investigation, the Ministry of Law and Human Rights, the Consumer Protection Agency, Inafis, the Consumer Dispute Management Agency, and ITE legal experts and digital.
In addition to attending the seminar, P2P Lending must also pass various other requirements. First, technological readiness and being registered at the Ministry of Communication and Information Technology (Kominfo). Then the second, the certainty of a business model that meets the criteria of good corporate governance, which includes the establishment of a system of operating procedures in managing a company.
OJK seeks to increase protection to the public, namely regarding restrictions on access to personal digital data by fintech lending. During the absence of a personal data protection law that can ensnare the perpetrators of data misuse, fintech lending can only access data figures from the borrower’s customer smartphone, namely the location, microphone and camera. This is what distinguishes legal and illegal fitech.