Free Pass for Foreign Investors in Digital Payment Sector
Bank Indonesia (BI) officially issued a new regulation, PBI No. 22/23/PBI/2020 on payment systems, which will become the legal basis for all licensing, reporting to overseeing the payment system's activities in Indonesia.
One of the important points of the regulation is that BI has relaxed provisions on capital participation in payment system providers (PJSP). Quoting BI's official statement, at least 15 percent of the shares must be owned by Indonesian citizens (WNI) and/or legal entities. In other words, foreign investors can own up to 85 percent of the stakes.
The share ownership composition for non-bank institutions (LSB) manifested as a public company (Tbk) is also allowed to have a share ownership percentage of five percent or more. However, non-bank institutions must have at least 51 percent of the voting rights held by the domestic party. "On the right to nominate a majority of members of the board of directors or board of commissioners, it’s a special right that must be owned by the domestic party," BI revealed. This PBI will take effect from July 2021.