OJK Releases New Rules, Here’s a List of Startups Entering Digital Banks

The Financial Services Authority (OJK) has finally released the latest regulations for banking in Indonesia. This rule is related to the activities of commercial banks and the presence of digital banks in the community.

In Indonesia, there are at least five startups that have been and are preparing to develop this service, including Gojek, Grab, and Shopee. One of the rules released is OJK Regulation (POJK) Number 12/POJK.03/2021 concerning commercial banks. It also regulates digital banking.

“The POJK is to encourage the acceleration of the digital transformation of the banking sector,” said Member of the OJK Board of Commissioners and Chief Executive of Banking Supervision Heru Kristiana in a press release, Thursday (19/8).

In the regulation, OJK clarifies the definition of a digital bank. “However, there is no dichotomy between banks that already have digital services, digital banks transformed from incumbent banks, or those formed through new establishments (full digital banks). Banks are still banks,” said Heru during the webinar.

The new regulation will also include changes such as the grouping of banks aka Commercial Banks Business Groups (BUKU) into Bank Groups Based on Core Capital or KBMI. KBMI will consist of four groups. Some have core capital below IDR 6 trillion to above IDR 70 trillion.

OJK noted that there are seven banks in the go-digital process, namely Bank BCA Digital, BRI Agroniaga, Bank Neo Commerce, Bank Capital, Bank Harda Internasional, Bank QNB Indonesia, and KEB HanaBank.

In addition, there are five who claim to have become digital banks. They include Bank Jago, Jenius from Bank BTPN, Wokee from Bank Bukopin, Digibank from Bank DBS, and TMRW from Bank UOB.

Several Startups Planning to Develop a Digital Bank

1. Gojek invests IDR 1.32 trillion in Bank Jago through the purchase of new shares, aka rights issue. This is done through its subsidiary, Dompet Karya Anak Bangsa (GoPay). Previously, this decacorn injected IDR 2.25 trillion into Bank Jago.

Gojek and Bank Jago have also started the early stages of collaboration and service integration. The form is in the form of providing Bank Jago’s non-cash payment method in the Gojek application.

Gojek’s Chief Corporate Affairs Nila Marita said the integration complements the non-cash payment option in the Gojek application. Bank Jago customers can make transactions without needing to top up their balance.

“This partnership will continue to deliver innovations in digital financial services. One of them is opening a Jago Bank account directly from the Gojek application,” said Nila in a written statement last month (22/7).

2. Grab is reportedly preparing to enter the digital business in the country through Bank Capital. This Decacorn also obtained a digital full bank (DFB) license from the Singapore monetary authority aka Monetary Authority of Singapore (MAS) at the end.

The license was obtained by a consortium of Grab and Singapore Telecommunications Limited. This service strengthens the financial business line, Grab Financial Group (GFG).

3. Shopee Parent, Sea Group This Shopee Parent has obtained a DFB license from MAS in Singapore. Quoted from the official MAS website, DFB is allowed to take deposits from and provide banking services for individual or retail and non-retail customer segments.

In Indonesia, Sea Group is the controlling shareholder of Bank Kesejahteraan Ekonomi. Bank BKE changed its name to Bank Seabank Indonesia or SeaBank.

4. Youtap Indonesia. This startup supported by the Salim Group plans to expand digital banking services by partnering with Bank Mandiri. The collaboration will provide non-cash payments through the Livin’ by Mandiri digital banking application at all McDonald’s outlets.

5. BukuKas. BukuKas is a digital financial management company for MSME that plans to expand digital banking services. This is after BukuKas received an investment of US$ 10 million or around IDR 142 billion.