Exclusive: UangTeman’s policy paper to Indonesia’s financial regulator: Page 4 of 4

 
No violent debt-collecting
 

 
Even when risk measurements are implemented, there will always be the possibility of non-performing loans. Then comes the less-than-pleasant act of calling in debts and ensuring dues are paid.
 
In Indonesia however, the debt-collecting practice is not always conducted in a peaceful manner. According to the Indonesian Consumers Organisation (YLKI), there have been a number of reports from consumers regarding debt collectors who often use intimidation and violence.
 
To avoid this violent and arbitrary practices, UangTeman proposes OJK formulate a standard process for collecting debts, but also ensuring that this process would not add to the cost burden of the lender or creditor.
 
Minimum capital requirement
 
Senior OJK executives have been discussing a minimum capital requirement for fintech companies – one proposal is that it be Rp50 billion (US$3.8 million). However, the exact amount has yet to be determined as the regulator is still formulating its fintech regulations.
 
For UangTeman, a minimum capital requirement is important as it would ensure that all players have enough capital to support their business.
 
However, if the minimum capital requirement is set too high, it will also set limits on the number of players.
 
“We need to keep in mind that fintech players are all startups, and most of us do not have millions of dollars sitting in the bank,” says Aidil.
 
“So we hope OJK will arrive at an amount that is not too high, but enough to prove that our business can compete in the market,” he adds.
 
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