Unregistered companies will not be allowed to tap financial markets or raise money from banks, said Nurhaida, vice chairman of OJK, especially since the 44 formally recognised fintech players in Indonesia are able to reach the country’s unbanked population due to extensive internet and smartphone penetration.

Peer-to-peer lending jumped 38% YoY in the first two months of 2018, hitting $250.32m (3.5t rupiah). Left unregulated OJ director Eko Ariantoro expressed concern that P2P lending businesses may take advantage of borrowers and become “loan shark-lie businesses.”

Minimum requirements already proposed for banks and their fintech partners include core capital of at least $70m (1t rupiah) and satisfactory risk ratings.