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Aditya Hadi Pratama · · 1 min readMore than a dozen players in Indonesian digital bank race, says OJK
“There are seven banks in Indonesia that have claimed themselves as digital banks and seven others who are still in the process to become digital banks,” Bisnis reported, citing a statement from Tony (who goes by only one name), deputy director of Basel and International Banking at the Indonesian Financial Service Authority (OJK).
Details:
- The OJK made the announcement when it confirmed that fintech firm MotionBanking, owned by Indonesia’s Bank MNC Internasional, had officially become a digital bank. It confirmed a list of digital banks in Indonesia.
- According to Tony, there are only two kinds of bank licenses in OJK, General Bank and Rural Bank (Bank Perkreditan Rakyat) licenses. There is no specific license for digital banks in the country as of yet. “The change is only on business model and how they will serve their customer,” he says.
Context:
- Both Bank Kesejahteraan Ekonomi, which was acquired by Sea Group and changed its name to SeaBank Indonesia, and Bank Bisnis Indonesia, which has seen investment from FinAccel, are notably missing from the list.
- Claiming to be a digital bank has pushed stock prices up for several publicly listed banks on the Indonesian Stock Exchange. For example, Bank Jago saw its stock rise more than 4x over the past six months.
Editing by Collin Furtado and Jaclyn Tiu
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