A lack of capacity within financial authorities about new technology can result in a risk aversion towards financial innovation. This can inhibit new business models, products and services and result in missed opportunities to tackle regulatory priorities, including financial inclusion and consumer protection. The program supports financial regulators in creating an enabling environment for innovative businesses while ensuring adequate consumer protection. The support of SECO focuses on digital assets, for which the supervisory authority has shifted from the Ministry of Trade to the Indonesian Financial Services Authority (OJK) in 2023.

Indonesia has an appropriate and enabling regulatory environment for digital financial services, which increases the supply of solutions that benefit and protect consumers, particularly low-income communities and women.

Financial authorities’ staff have increased knowledge of existing and emerging innovative digital financial services business models, products and services and the risks that they pose to consumers and markets, in order to implement corresponding impactful regulatory responses.

Financial authorities’ staff (men and women) have increased knowledge of gender dimensions of policy approaches, regulatory innovation initiatives, and supervision. Women have increased contribution to the development of financial authorities’ digital financial services initiatives.

Financial authorities implement an effective licensing regime and enhanced regulatory innovation initiatives which offer a new model of regulatory support for the digital financial services sector which meet the needs of providers seeking to develop and launch products and services in the market.

Risultati principali attesi:  

Training of Trainers programme on digital assets delivered to up to 30 trainers who will then train wider organization to embed expertise within financial authorities on digital assets business models and risks, and how to effectively oversee and support digital assets firms.

Support on digital assets supervisory approach implementation: to ensure a regulatory reporting experience which is more efficient and effective.

Conduct Post Implementation Review of the regulatory framework for digital assets.

Develop content on gender issues in financial regulation and the challenges faced by women consumers of digital financial services, to be incorporated as part of a module on the Cambridge Digital Assets for Regulators Program.

Support on digital sandbox for digital assets policy development: supporting financial authorities on the design and development of a digital sandbox for testing digital assets related activities.