The Arrival Of The Long-Awaited KBLI Numbers In Fintech – Technology



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On 24 September 2020, Statistics Indonesia (Badan Pusat
Statistik
─ “BPS“) issued BPS
Regulation No. 2 of 2020 on Indonesian Standard Business
Classifications (Klasifikasi Baku Lapangan Usaha Indonesia
─ “KBLI“), which is known as the
2020 KBLI. The 2020 KBLI came into force on its issuance date and
revoked BPS Regulation No. 95 of 2015 on the KBLIs, as amended by
BPS Regulation No. 19 of 2017, which is known as the 2017 KBLI. The
2020 KBLI introduces more than 200 new 5-digit KBLI numbers to keep
up with the rapid development of new types and divisions of
businesses in Indonesia. Included among the new KBLI numbers, the
2020 KBLI introduces the long-awaited KBLI numbers specifically to
accommodate fintech related business
activities.

The New KBLI Numbers in Fintech

Before the issuance of the 2020 KBLI, there was only one KBLI
number that specifically referred fintech in its description ie.
KBLI No. 63122, a web portal for commercial purposes according to
which included in this KBLI are web sites/portals and digital
platforms for commercial purposes (profit), which are applications
used to facilitate or mediate electronic transaction services, such
as marketplaces, digital advertising, fintech and online
on-demand services.

In practice, this (old) KBLI number had been used for a number
of different fintech activities. It was not uncommon for fintech
players to also use other KBLI numbers which they believe are the
appropriate KBLI number for their business activities in Indonesia.
Not only that, the absence of specific KBLI numbers for different
fintech activities have also resulted in the reference to varying
KBLI numbers in the fintech companies’ articles of association
or Business Identification Number (Nomor Induk Berusaha
─ “NIB“). Due to these reasons and
the rapid development of fintech activities in Indonesia, one KBLI
number to cover all kinds of fintech activities was no longer
appropriate.

In the 2020 KBLI, KBLI No. 63122 explicitly states that this
KBLI no longer includes fintech because now several new KBLI
numbers cover fintech activities in Indonesia. The following are
the new KBLI numbers covering fintech activities:










KBLI Number KBLI Title Description of KBLI Number
Peer to Peer
(“P2P”) Lending Fintech
Activities
64951 Conventional Information Technology-Based Lending
Services (P2P Lending Fintech)
This group includes conventional fintech based P2P
lending services, with business activities including the provision,
management and operation of financial services to bring lenders
together with loan recipients in order to enter into a lending and
borrowing agreements in Indonesian Rupiah currency, directly
through an electronic system using the internet network.
64952 Sharia Information Technology-Based Lending
Services (P2P Lending Fintech)
This group includes fintech based P2P lending
services, which are organized entirely based on sharia principles,
with business activities including the provision, management and
operation of financial services to bring together lenders and loan
recipients in order to enter into financing agreements (akad
pembiayaan) in Indonesian Rupiah currency, directly through an
electronic system using the internet network.
64953 Sharia Business Units of Information
Technology-Based Lending Services (P2P Lending Fintech)
This group includes the activities of work units
from the head office of conventional fintech based P2P lending
services, which provide fintech based P2P lending services based on
sharia principles and/or functions as the main office of the office
engaged in business activities based on sharia principles.
Payment Services
Related Fintech Activities
66411 Payment Service Providers (Penyedia Jasa
Pembayaran ─ “PJP”)
This group includes activities related to the
provision of payment services to end-users of Payment System
services on the front end, covering activities including, among
others: displaying information about sources of funds; initiating
transactions/acquiring (electronic wallets, acquirers and payment
gateways); issuing payment instruments/accounts; remittance/fund
transfer services.
66412 Payment System Infrastructure Providers
(Penyelenggara Infrastruktur Sistem Pembayaran ─
“PIP”)
This group includes activities related to the
operation of payment system infrastructure which is primarily used
to facilitate PJP transactions, both for the PJP’s own
interests and the interests of the end-user, covering activities
which include, among others, performing functions as a principal,
switching, clearing, and end-settlement.
66413 Providers of Payment System Support This group includes activities related to the
activities that support PJP activities and/or PIP in processing
payment transactions. Examples are card printing, payment
personalization, providing a data center and/or disaster recovery
center, providing a terminal, providing security features for
payment instruments and/or payment transactions, providing
technology contactless transaction support, providing data routing
to support payment transaction processing.

The above new KBLI numbers in fintech are a breath of fresh air
for fintech players and potential investors in Indonesia, as there
is now more certainty regarding the KBLI numbers for different
fintech activities in Indonesia.

How the New KBLI Numbers Will Affect Existing Fintech Companies
in Indonesia

Although by law, the 2020 KBLI came into force on its issuance
date, in practice, to date the Online Single Submission
(“OSS“) system still uses the 2017 KBLI.
Therefore, until the OSS System has started using the KBLI 2020,
the new KBLI numbers technically do not immediately impact fintech
operations.

As you may be aware, on 11 October 2018 The Ministry of Law and
Human Rights (“MOLHR“) and the
Coordinating Ministry for Economic Affairs
(“CMEA“) issued a joint announcement
announcing that all existing companies at that time had to adjust
their lines of business to the 2017 KBLI within 1 year of the date
of the announcement. Strictly based on the announcement, if a
company failed to comply with the obligation to adjust to the 2017
KBLI, the OSS agency may freeze the company’s NIB, potentially
hampering the company’s business activities. Given this, it is
possible that in the future, when the OSS system has started using
the KBLI 2020, the Government may issue a similar requirement. When
it happens, all existing fintech companies in Indonesia should be
ready to adjust their KBLI numbers.

How to Adjust to the New KBLI Numbers

In order to adjust to the new KBLI numbers, a fintech company
must convene a General Meeting of Shareholders whereby the agenda
for which is to amend the company’s purposes and objectives
stated in its Articles of Association
(“AOA“) so that the wordings of the
purpose and objective are in line with the descriptions set out in
the relevant KBLI number. Once the AOA have been amended, then
through a notary public, the company must submit the amendments to
the AOA to the MOLHR through the MOLHR’s online system. Once
the amendments to the AOA has received approval from the MOLHR, the
OSS system will automatically adjust the company’s KBLI number
in the company’s NIB to the new one; effecting the
adjustment.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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