Xiang Hu Bao-like platform in Indonesia closed down by regulators

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.