POJK number 13/POJK.02/2018 - Digital Financial Innovation in the Financial Services Sector regulation is an initiative to stimulate innovation in the digital financial services ecosystem such as through crowdfunding, settlements, investment management, insurance and other categories that fall under the purview of the regulator, the OJK (Otoritas Jasa Keuangan (Financial Services Authority of Indonesia)). This regulation also covers the registration of such companies as digital financial innovation operators (inovasi keuangan digital or 'IKD') who are also then able to apply to the OJK regulatory sandbox. IKD operators provide "innovative" financial products and services which represents a new business process or model, activity, enhancement or efficiency which provides value to the digital financial services ecosystem.
The regulatory sandbox framework issued by the OJK to regulate Digital Financial Innovation (Inovasi Keuangan Digital – IKD) operators. See local law regarding applicants to the sandbox and requirements of registeration as IKD operators.
The OJK is Indonesia's financial services regulator. Another regulatory sandbox is operated by Bank Indonesia, the country's central bank.
- Digital Financial Innovation, hereinafter abbreviated as IKD, is the activity of updating business processes, business models, and financial instruments that provide added value new in the financial services sector by involving digital ecosystem.
- Financial Service Institutions are institutions that are carry out activities in the Banking sector, Capital Markets, Insurance, Pension Funds, Financing Institutions and Other Financial Services Institutions as referred to in Law Number 21 of 2011 concerning Financial Services Authority.
- The organizer is each party holding IKD.
- A Regulatory Sandbox is a testing mechanism conducted by the Financial Services Authority to assess business process reliability, business models, instruments finance, and governance of the Operator.
- The IKD ecosystem is a community consisting of authorities, Organizers, consumers, and / or other parties who use the digital platform together for encourage IKD to benefit the community