“Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) has issued Regulation No. 26/POJK.01/2019 concerning Electronic Licensing within the Financial Services Sector (“POJK 26/2019”) on 28 October 2019 to undergo the licensing process electronically through an integrated licensing portal.”
Prior to electronic licensing, the licensing procedure for financial services was conducted differently for each type of financial services based on different regulations. Now, every licensing procedure is to be conducted electronically and in a uniformed manner through the licensing portal.
The integrated licensing portal was created to consort with the advancing information technology and globalization that has been growing rapidly throughout the era. Specifically, electronic licensing benefits all related parties in the financial services sector. For the financial services institutions, individuals, or entities (collectively referred to as “Applicants”), electronic licensing provides more efficiency, transparency, and simplicity. For OJK, the electronic licensing guarantees data accuracy accelerates decision-making and boosts effectivity in supervising the whole licensing process which involves multiple sectors in OJK. Essentially, electronic licensing is operated to meliorate the previously convoluted procedure.
Obtain the Right to Access
Before Applicants can conduct the licensing procedure, Applicants must first obtain the right to access the portal granted by OJK (the “Right to Access”). Applicants may request for the Right to Access by registration and fulfilment of administration requirements. The Right to Access may be terminated, however, in one of these following circumstances:
a. owner of the Right to Access requests for a termination;
b. OJK finds it necessary to terminate the Right to Access; or
c. the business license belonging to the owner of the Right to Access has been revoked.
Upload Required Documents
After obtaining the Right to Access, Applicants must upload their required documents, data, and/or additional licensing information if needed. The stipulated licensing procedure encompasses document requirements, service level agreement, licensing step, and other matters governed by OJK in the form of regulation (Peraturan OJK), circular letter (Surat Edaran OJK), or other regulations applicable to the financial services sector of each Applicant.
Receive Proof of Receipt or Notification
OJK shall issue a proof of receipt electronically through the licensing portal system. All documents uploaded into the system shall be owned completely by OJK, be deemed confidential, and cannot be retracted.
In the event OJK finds any discrepancy between the documents submitted by Applicants and the regulation, OJK would issue a notification electronically to the Applicants. Alternatively, OJK shall issue a notification stating approval or rejection. Such approval or rejection shall be made in the form of an electronic document containing an electronic signature. However, in the event OJK has yet to implement such provision, the aforementioned approval or rejection shall be sent in the form of a physical document and e-mail to the Applicants. OJK has anticipated the possibility of failure to access the system by stipulating a force majeure provision within POJK 26/2019. In such event, Applicants shall submit an application offline along with their supporting documents in the form of the electronic document.
Simplicity Licensing Procedure
The electronic licensing was created to maximize efficiency and simplicity throughout the licensing procedure. POJK 26/2019 delineates the existence of a tracking system displaying the flow of the procedure, along with the status of each application. Furthermore, OJK has also provided a helpdesk/call center service for the electronic licensing process. Conclusively, electronic licensing is promised to be advantageous for the financial services sector holistically.
Author: Yohana Veronica Tanjung
Gaffar & Co., Indonesian Boutique Law Firm which specializing and focus on commercial law areas e.g. Information and Technology.
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