UangTeman is suing Otoritas Jasa Keuangan (OJK) after Indonesia’s financial services authority revoked the fintech startup’s lending license last March.
The case was filed on May 13. According to the legal filings, UangTeman seeks the restoration of its lending license by demanding that OJK reverse its decision.
Photo credit: UangTeman
Tech in Asia has reached out to FTI Consulting, which is handling UangTeman’s bankruptcy proceedings, for comment. An OJK spokesperson tells Tech in Asia that while it respects UangTeman’s right to legal action, the regulator’s decision is consistent with its mandate.
The loss of the lending license may have put into question UangTeman’s attractiveness to potential acquirers. Applying for a fintech license in Indonesia – whether for lending or payments – entails a lengthy process. In the past, companies such as Gojek have resorted to acquiring smaller companies that already hold the license.
As Tech in Asia reported last year, UangTeman had stopped paying salaries and even disbursing loans – its sole business – from the end of 2020 as it dealt with the fallout of the Covid-19 pandemic.
Since then, former and current employees have demanded the settlement of their outstanding salaries. A group of 11 individual investors who collectively put in over US$600,000 in the online lender have also joined the chorus.
In January, UangTeman said it had found a potential buyer, but it’s unclear whether there have been any developments.
This story is developing. Check back for updates.
Editing by Terence Lee and Eileen C. Ang
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