Japan’s Financial Services Agency (FSA) and the Financial Services Authority of Indonesia (Otoritas Jasa Keuangan: OJK) have exchanged letters on Fintech Cooperation Framework “regarding Innovation in the financial sector.”
This will lead to “increased exchanges regarding innovative trends and strengthen the cooperative relationship between the two authorities.”
The cooperation framework also “includes referral mechanisms for financial innovators, which will therefore facilitate their entry into Indonesian or Japanese markets.”
Indonesia and Japan have “built connections with each other in the field of supervision and other financial cooperation.”
As innovative financial services expand on a global scale, “tightening the relationship between authorities becomes more important.”
The Financial Services Agency is a Japanese government agency and “an integrated financial regulator responsible for overseeing banking, securities and exchange, and insurance sectors in order to ensure the stability of the financial system of Japan.”
Financial Services Authority of Indonesia is an Indonesian government agency “which regulates and supervises the financial services sector.” Its head office is in Jakarta.
As covered in April 2022, JULO, an online lender serving consumers in Indonesia, has raised $80 million in capital from Japan-based Credit Saison.
The new funding is split between $30 million in equity plus a $50 million debt facility. Investors from previous rounds include Skystar Capital, Saratoga Investama, East Ventures, Quona Capital, Central Capital Ventura, MDI Ventures, Gobi Partners, and more.
Kosuke Mori, Senior Managing Executive Officer and Head of Global Business at Credit Saison Co., Ltd., said that credit innovation requires an understanding of local markets to improve financial health of consumers:
“JULO has emerged from the past few years as a resilient and COVID-proven business with more than US$300M disbursements under its belt to date. We look forward to joining hands with them in this next phase of growth to accelerate financial products that will drive truly meaningful change for individuals in Southeast Asia.”