Bank Indonesia is setting up a dedicated office to help developers of financial technology. The fintech office, BI-FTO, will run a regulatory sandbox to allow developers to test their products under relaxed regulations. It will also provide services to help developers to understand Indonesia’s regulatory policies on fintech, gather and disseminate information on developments, and hold regular meetings with authorities and international bodies interested in the use of technology in finance. Bank Indonesia Agus Martowardojo said with rapid changes, regulations should not try to precede innovation, but should stay close to innovation. A supportive climate for business must be established while being aware of potential risks, he said, adding BI-FTO is an attempt to maintain a level playing field through a regulatory regime that is balanced and proportioned without slowing the pace of innovation.
