Originally, there were no foreign ownership limits for a non-bank company to act as an e-Wallet provider, e-Money issuer or fund transfer operator, leading to an influx in applications from foreign owned providers in Indonesia.
On 7 May 2018, Bank Indonesia (“BI”) published a new Regulation on Electronic Money (Regulation No. 20/6/PBI/2018), limiting foreign investments in the payment sector to 49% direct or indirect ownership of the licensed entity.
This client alert was first published in April and has been updated to reflect the impact of such new regulations on electronic money in Indonesia.
Find out more in our client alert.