The aim of KBLI 2020 is to harmonize and cover both existing and recent development of business activities, such as fintech and digital goods/services to which are not fully accommodate by the earlier KBLI 2015 (amended in 2017) version. The issuance of KBLI 2020 has revoked the applicability of KBLI 2015. KBLI 2020 introduces several business activities which are already practiced in the market, and it alters description to cover various digital business practices as mostly has been classified into 63122 labelled as “web portal and/or digital platform with business purposes”. The differences between KBLI 2015 and the 2020 version are highlighted, as follows:
“web portal and/or digital platform with business purposes”
Business activities include the use of web portal for commercial purpose which also employs search engine for producing and maintaining big databases containing address and Internet contents in accessible forms. The use of web portal as the gateway to the Internet, such as a media website which provides periodically updated contents, either directly or indirectly, for commercial purposes. The use of digital platform and/or website is for online transaction, including business facilitation and/or intermediary of change in ownership of goods/services through Internet, such as online orders, electronic payment, and shipment of such orders.
This also covers any other online website for commercial purposes including online marketplace, digital advertising, fintech, and on demand online services.
The description is exactly similar with the KBLI 2015 except for its ending sentences, as follows:
This KBLI also include online marketplace, digital advertising, and on demand online services. This classification, however, does not include peer to peer (P2P) lending (with classification code 6495) and payment services fintech (with classification code 6641).
As indicated above, the KBLI 2020 introduces several digital-associated financial service classifications, namely:
- 6495 “Fintech P2P Lending”
64951 – Fintech P2P Lending
Business activities include conventional peer to peer lending through the Internet, including procuring, processing, and maintaining financial service for lending activities between lenders and borrowers in Rupiah currency through the Internet-connected electronic system.
64952 – Sharia Fintech P2P lending
Business activities include financial services that provide, manage, and operate as a marketplace for lending activities between lenders and borrowers following the Sharia principle, in Rupiah currency through the electronic system using an internet network.
64953 – Sharia Business Unit (Unit Usaha Syariah) Fintech P2P Lending
Business activities include a unit under the Sharia P2P financial services holding company that provides, manages, and operates as a marketplace for lending activities between lenders and borrowers following the Sharia principle, in Rupiah currency through Internet-connected electronic system.
- 6615 “Intermediaries Commodity Future Exchange”
Business activities include any commodity trading through the electronic system facilitated by intermediaries approved by the Commodity Futures Trading Regulatory Agency (BAPPEBTI) on behalf of the customers/users. Crypto asset trading is not explicitly mentioned under this classification, but classification number 62014 (blockchain technology development) explicitly states that crypto asset trading falls under the 6615 classification.
- 66118 “Securities Crowdfunding”
Business activities include a provision, management, and operation of a platform that facilitates the issuer in conducting securities offering directly to investors through the internet-connected electronic system.
- 6641 “Payment Service Provider”
66411 – Payment Service Providers
Business activities include the providers which serve their services to end users in the front-end sides, such as, displaying source of funds, initiating transaction/acquiring (e-wallet, acquirer, and payment gateway), handling payment account, fund transfer, and remittance services.
66412 – Payment Service Infrastructure Providers
Business activities include to the providers of payment service infrastructure used as transaction facilitation for Payment Service Providers (PSP), including such facilitation for the benefits of PSP themselves or end users to which also constitutes implementing activities functioning as principal, switching, clearing, and final settlement.
66413 – Payment Service Supporting Providers
This includes all supporting activities for payment services carried out by Payment Service Provider or Payment Service Infrastructure Providers, such as card printing, personalized payment, data center/disaster recovery center services, terminal provisions, payment security feature provisions and/or payment transaction, contactless enablement, and data routing services.
It is not clear from the regulation regarding the fulfillment period for fintech companies to adjust their KBLI following the new KBLI 2020. Our findings on the Online Single Submission (the "OSS") official web page still uses KBLI 2017 as a licensing reference rather than the new KBLI 2020. Moreover, the Financial Service Authority (the "OJK") and Bank Indonesia (the “BI”) are not yet enacting any regulation nor circular letter regarding the requirement to adjust fintech companies' existing licenses following the new KBLI 2020. On top of that, there are no applicable sanctions for companies that fail to comply with the new KBLI 2020. However, to support the rapid development of the fintech industry, we expect the authorities to issue the implementing regulation or a guideline regarding this matter to make it clearer for the fintech industry. In the meantime, fintech companies can rely on the existing license and/or registration granted by the OJK or BI (as may be relevant) to continue their operation.
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