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Aditya Hadi Pratama · · 1 min readXiang Hu Bao-like platform in Indonesia closed down by regulators
“The Indonesian Financial Service Authority (OJK) has closed down a mutual aid platform called Saling Jaga, citing its lack of an insurance license,” reported Kompas. (The report is in Bahasa Indonesia)
Details:
- Saling Jaga was created by Kitabisa, an online donation platform for social causes backed by early-stage investor 500 Startups. According to OJK, the company has agreed to shutter its mutual aid platform until it gets an insurance license.
- Kitabisa previously said that Saling Jaga had been registered with OJK Fintech Sandbox. The startup runs its donation platform under a license from Indonesia’s Ministry of Social Affairs.
- A Kitabisa representative told Tech in Asia that the company is in talks with OJK and the ministry “to resolve this problem.”
- On its website, the startup stated that Saling Jaga can’t accept new members right now, but existing members can still access new information through Kitabisa’s app.
Context:
- Saling Jaga is similar to Ant Group’s Xiang Hu Bao and Tencent-backed Waterdrop in China, where participants can receive medical coverage as long as they agree to pitch in with other participants’ medical expenses.
- Kitabisa says that the platform has attracted 650,000 members in March 2021. To date, it has disbursed 2 billion rupiahs (around US$140,000) to 500 members diagnosed with critical illnesses, including Covid-19.
Editing by Miguel Cordon and Eileen C. Ang
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