How to Start a Fintech Company in Indonesia: The Complete Guide for Foreign Investors

Summary: Indonesia is one of Southeast Asia’s most compelling destinations for fintech investment. This guide walks foreign investors through every key step, from understanding the regulatory landscape and choosing the right fintech model, to securing OJK or Bank Indonesia licenses and going to market. Whether someone is exploring digital payments, insurtech, wealthtech, or crypto assets, this is the starting point.

Why Indonesia? The Fintech Market Opportunity Is Hard to Ignore

Setting up a fintech company in Indonesia is one of the most strategic moves a foreign investor can make in 2025 and beyond. The country’s digital finance market is currently valued at approximately USD 40 billion, growing at over 20% annually, according to investment advisory data from Gaivo Consulting Group. 

The addressable opportunity goes well beyond market size alone. Indonesia’s fintech industry consistently ranks among the top three recipients of fintech funding in Southeast Asia, according to Fintech News Indonesia’s 2025 Indonesia Fintech Report. In 2024 alone, Indonesian fintech companies secured USD 141 million across 23 transactions, representing 32% of total tech equity funding in the country.

Key Market Highlights (2025-2026)

• 180 million+ underbanked adults representing massive demand for digital financial services

• 64 million MSMEs with limited access to formal credit creating a USD 70 billion financing gap

• Indonesia ranked 3rd in ASEAN for fintech funding, 2nd in deal volume in 2024

• Digital payments are now the most popular e-commerce payment method, surpassing cash

• 14.16 million registered crypto investors as of April 2025, up 3.28% month-on-month (OJK data)

• Emerging hot verticals: insurtech, wealthtech, embedded finance, alternative credit scoring

The Indonesia digital finance market size is projected to exceed USD 150 billion by 2025, driven by accelerated digital adoption post-pandemic and a rapidly growing middle class. For foreign investors evaluating Southeast Asia entry, this scale is simply unmatched by any comparable market in the region.

Which Fintech Business Models Are Open to Foreign Investors?

Not all fintech models are created equal when it comes to foreign market entry. Indonesia’s regulatory framework defines a broad set of recognised fintech categories, and the entry path, licensing authority, and ownership rules differ across each one. Understanding where a business model fits is the foundational first step.

The following verticals represent the most active categories for foreign investors today, excluding P2P lending, which carries its own elevated compliance burden and capital requirements under OJK Regulation No. 40 of 2024.

Fintech Business Models Open to Foreign Entry

• Digital Payments and E-Wallets: Licensed by Bank Indonesia. Includes payment gateways, e-money issuers, and remittance platforms.

• Digital Banking and Neobanking: OJK-licensed. Allows up to 99% foreign ownership, making it one of the most accessible verticals.

• Insurtech: OJK-supervised. Covers technology-driven insurance distribution and underwriting support.

• Wealthtech and Robo-Advisory: OJK-regulated. Covers digital investment platforms, robo-advisory services, and retail algorithmic trading.

• BNPL (Buy Now, Pay Later): OJK-regulated under revised frameworks. Foreign ownership generally capped at 85%.

• Crypto Asset Trading: Now fully under OJK jurisdiction since 10 January 2025, following the P2SK Law (Law No. 4 of 2023).

• Financial Services Aggregators: A newly formalised category under OJK Regulation No. 4 of 2025.

• Alternative Credit Scoring (ACS): Growing fast under OJK Regulation No. 29 of 2024.

另请阅读： OSS Indonesia：外国投资者完整指南

Understanding Indonesia’s Fintech Regulatory Framework

The regulatory environment for any fintech company in Indonesia is shaped by two primary authorities. The Financial Services Authority (OJK, or Otoritas Jasa Keuangan) supervises all non-payment fintech. Bank Indonesia (BI) has authority over payment system providers, including e-wallets, e-money issuers, and payment gateways.

The most significant regulatory development in recent years is the P2SK Law (Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector). This legislation overhauled the entire fintech regulatory architecture, introduced the ITSK (Inovasi Teknologi Sektor Keuangan) framework, and transferred crypto asset oversight from Bappebti to OJK effective 10 January 2025.

What the ITSK License Indonesia OJK Framework Covers

• Transaction settlement for securities, including clearing and custody of financial instruments

• Capital raising activities, such as equity crowdfunding and smart contract-based fundraising

• Investment management using advanced algorithms, including robo-advisory and digital financial planning

• Risk management activities related to product development and underwriting

• Market support functions, including credit scoring, financial services aggregation, and e-KYC

• Digital financial assets, including crypto assets (now OJK-supervised)

In February 2024, OJK issued OJK Regulation No. 3 of 2024 on the Implementation of ITSK, creating a new licensing regime for fintech businesses under the ITSK umbrella. This was further complemented by OJK Regulation No. 29 of 2024 on Alternative Credit Scoring (ACS), providing regulatory clarity for credit data analytics businesses. 

专业提示： OJK offers a regulatory sandbox programme that allows fintech startups to test products and services under limited supervision before applying for a full license. This is a practical route for businesses entering with an innovative model that does not yet fit neatly into existing license categories. It reduces risk and can accelerate the formal licensing process.

Foreign Ownership Rules for Fintech in Indonesia: What Investors Must Know

Foreign ownership fintech Indonesia rules are among the most critical factors to get right before incorporation. Getting the ownership structure wrong at the outset is not just a compliance issue; it can create legal complications that are difficult and costly to unwind later, as OJK requires ownership adjustments to be built into the structure at incorporation.

The table below summarises current ownership caps by fintech category, based on data from OJK and the ICLG Fintech Laws and Regulations Report 2025-2026 and Global Legal Insights Fintech 2025.

Fintech Type	Foreign Ownership Cap	Regulator
Digital Banking / Neobank	Up to 99%	OJK
Investment Advisory (Non-Discretionary)	Up to 99%	OJK
Payment Systems / E-Wallets	Up to 85%	Bank Indonesia (BI)
Insurtech	Up to 80%	OJK
Financial Services Aggregators	Up to 85%*	OJK
Crypto Asset Trading	Subject to OJK review	OJK (since Jan 2025)
BNPL (Buy Now, Pay Later)	Up to 85%	OJK
Robo-Advisory / Wealthtech	Up to 99%	OJK

*Financial services aggregators under OJK Regulation No. 4 of 2025 also carry governance requirements, including fit-and-proper tests for principal shareholders and board members, and restrictions on foreign workers in compliance and HR roles.

专业提示： For most fintech models, 100% foreign ownership is not permitted. Identifying a trustworthy Indonesian shareholder or local strategic partner early is not just a legal requirement but a genuine market advantage. Local partners can significantly accelerate regulatory navigation, stakeholder relationships, and customer trust-building.

How to Set Up a Fintech Company in Indonesia: Step-by-Step

The process of setting up a fintech company in Indonesia follows a defined sequence. While some steps can run in parallel to reduce the overall timeline, the order of foundational decisions matters enormously. Here is what the process looks like in practice.

Step 1: Establish a PT PMA (Foreign Investment Company)

PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the required legal entity structure for foreign investors in Indonesia. Fintech company registration Indonesia starts here, before any licensing application can proceed. The PT PMA must be established with a valid KBLI (Indonesian Standard Industrial Classification) code that correctly reflects the intended fintech activities.

Registration goes through the OSS-RBA (Online Single Submission Risk-Based Approach) platform and must comply with BKPM (Investment Coordinating Board) requirements, recently updated under BKPM Regulation No. 5 of 2025. 

Step 2: Determine the Correct License Type

This is the step where most foreign investors benefit most from specialist guidance. OJK fintech license Indonesia requirements differ significantly by business model. Misclassifying a payment product under an OJK license instead of a Bank Indonesia payment license, for instance, creates a fundamental compliance failure from day one.

For payment system-related products (e-wallets, payment gateways, digital remittance), the Bank Indonesia payment license Indonesia is the right path. For all other fintech models covered under the ITSK framework, OJK is the primary licensing authority. (SSEK)

专业提示： Read OJK Regulation No. 3 of 2024 on ITSK carefully before any application. The regulation defines which business activities fall under OJK’s jurisdiction and sets out the phased licensing process from registration to full licensing approval.

Step 3: Meet Capital Requirements

Minimum paid-up capital requirements vary significantly by fintech category. While some ITSK-registered entities have relatively accessible thresholds, digital banking licenses require substantially higher capitalisation. The PT PMA financial services Indonesia entity must demonstrate adequate capitalisation to the regulator.

It is worth noting that for P2P lending (excluded from this article), POJK No. 40 of 2024 raised the minimum paid-up capital to IDR 25 billion, a tenfold increase from the previous threshold. Other fintech categories have their own specific requirements, which should be verified directly with OJK or through a licensed advisory firm.

Step 4: Submit the OJK or BI License Application

The application process involves extensive documentation, including business plans, IT security policies, governance documents, and proof of capital. Directors and commissioners are subject to a fit-and-proper test conducted by OJK, assessing integrity, financial reputation, and professional competence.

OJK approval for most ITSK licenses takes between 6 and 18 months depending on the license type and completeness of documentation. Using this period productively, for technology setup and team building, is important for maintaining overall project timelines.

Step 5: Register as an Electronic System Provider (TDPSE)

All fintech companies operating in Indonesia must register with the Ministry of Communications and Digital Affairs as an Electronic System Provider (TDPSE). This is mandatory under Government Regulation No. 71 of 2019 on the Implementation of Electronic Systems and Transactions. 

For financial services aggregators and certain other ITSK businesses, ISO 27001 information security certification is also required within three years of licensing. Data centers and recovery centers must be located in Indonesia, adding to the infrastructure planning requirements.

Step 6: AML/KYC and Ongoing Compliance

Ongoing compliance obligations are significant. Fintech companies must implement robust AML (Anti-Money Laundering) and KYC (Know Your Customer) frameworks from the outset. Indonesia’s Personal Data Protection Law (Law No. 27 of 2022) adds another layer of data governance obligations. 

OJK requires periodic reporting from all licensed entities, including semesterly and annual reports with audited financials. Incidental reports are required within five business days of material events such as shareholder changes, disputes, fraud, or cyberattacks.

Realistic Timelines: How Long Does It Actually Take?

Foreign investors planning to set up a fintech company in Indonesia should plan for a total timeline of 12 to 24 months from initial incorporation to commercial launch. This is not a reflection of bureaucratic inefficiency, but of the thoroughness of Indonesia’s financial services regulatory review process.

The table below maps out the key stages and their typical durations, based on market entry data from XPND.

Stage	Timeline	Key Actions
PT PMA Incorporation	2-3 months	KBLI selection, OSS-RBA registration, notarial deeds
OJK / BI License Application	6-18 months	Submission of docs, fit-and-proper test, capital proof
Technology & Team Setup	3-6 months (parallel)	Local data center, ISO readiness, compliance team
TDPSE Registration	1-2 months (parallel)	Ministry of Communications and Digital Affairs registration
Market Launch Preparation	1-2 months	Final compliance checks, soft launch, go-to-market

专业提示： Many stages in this process can run in parallel. While waiting for OJK approval, companies can work on technology infrastructure, team recruitment, and compliance framework development. Starting these workstreams early is the single most effective way to compress the overall timeline.

Common Mistakes Foreign Investors Make When Entering Indonesia’s Fintech Market

Indonesia’s fintech regulatory landscape has undergone a major overhaul between 2022 and 2025. Research or advice based on pre-2023 frameworks is likely outdated in key areas, particularly around ownership caps, licensing categories, and crypto oversight. Here are the mistakes that cause the most delays and costs.

Mistakes That Derail Fintech Market Entry in Indonesia

• Choosing the wrong KBLI code at PT PMA incorporation, which misrepresents the business to regulators from day one

• Underestimating capital requirements and discovering shortfalls mid-application

• Misclassifying the fintech model and submitting to the wrong regulator (OJK vs Bank Indonesia)

• Ignoring local data center requirements, which are mandatory for most fintech operators

• Not accounting for foreign worker restrictions in compliance and HR roles

• Failing to plan the Indonesian shareholder structure before incorporation, leading to costly restructuring

• Relying on outdated regulatory research, particularly for crypto asset licensing, which shifted entirely to OJK in January 2025

• Underestimating the importance of the fit-and-proper test for directors and commissioners

Tax Considerations for Fintech Companies in Indonesia

Tax compliance is not an afterthought for a fintech company in Indonesia. From the moment a PT PMA is incorporated, the entity carries ongoing tax obligations that require proper planning and consistent management. The most common areas of exposure for foreign-owned fintech companies are outlined below.

Indonesia applies a standard corporate income tax rate of 22%. For qualifying technology companies, incentives may be available under Government Regulation No. 78 of 2019 on 税 Facilities for Investments in Certain Business Fields. Transfer pricing is a significant risk area for companies with cross-border related-party transactions, particularly given that most foreign-invested fintech companies have offshore parent entities.

Key Tax Considerations for Foreign-Owned Fintech Entities

• Corporate Income Tax: Standard rate of 22%, with potential reductions for qualifying tech investments

• Withholding Tax (WHT): Applies to dividends paid to foreign shareholders, management fees, royalties, and technical service fees

• VAT on Digital Services: Applies to certain digital financial services; classification matters for both pricing and compliance

• Transfer Pricing: Arm’s length documentation required for all related-party transactions with offshore affiliates

• Monthly and annual tax reporting obligations begin from the first month of incorporation, regardless of revenue

• Permanent Establishment (PE) risk: Foreign companies providing services into Indonesia without a local entity may unintentionally create taxable presence

专业提示： Integrating tax planning with company setup from Day 1, rather than treating tax as a compliance exercise to address post-launch, can significantly reduce a fintech company’s long-term liability and avoid penalties. This is especially important for cross-border structures where intercompany pricing and dividend repatriation paths need to be established upfront.

Summary: Indonesia’s Fintech Opportunity Is Large, Accessible, and Structurally Ready

The path to launching a fintech company in Indonesia is more structured than many foreign investors initially expect, but it is absolutely navigable with the right preparation. The regulatory framework has matured significantly since 2022, providing much greater clarity on licensing paths, ownership rules, and compliance obligations across every major fintech category.

What makes Indonesia stand out is not just the size of the opportunity, but the depth of the unmet need. 180 million underbanked adults, 64 million underserved MSMEs, and a government actively supporting fintech innovation through OJK’s sandbox programmes and progressive regulatory reforms represent a market where thoughtful, compliant, well-capitalised fintech companies have genuine room to build lasting businesses.

The key to a successful entry is getting the foundations right: the right corporate structure, the right fintech classification, the right ownership architecture, and a tax and compliance strategy that is integrated from day one rather than bolted on after launch. Foreign investors who approach Indonesia’s fintech market with that discipline will find one of Southeast Asia’s most rewarding opportunities waiting for them.