In today’s post, we want to share some of the challenges we faced due to strict financial laws and regulations in Indonesia. But before we dive into the main topic, it’s important to highlight a relevant factor that makes the Southeast Asian country different from Estonia and other countries that are available in our system. More than 86% of Indonesians identified themselves as Muslims, so their financial services work according to the Islamic finance principles.

In Indonesia, typical loan companies are not able to operate. They need to be peer-to-peer lenders to have a P2P license. It is the case of Danabijak, which is supervised by OJK (Otoritas Jasa Keuangan), the Indonesian financial services authority. P2P lending differs from the traditional one in the way it works. Money comes from a lender who is an individual or a group on a web-based platform while on a bank loan it's necessary to go through commercial banks or other financial institutions.

The main challenge when entering the Indonesian market was the development process. We had to adapt our applications and work on the coding part to perfectly suit the company’s needs and national financial regulations. Another challenge that turned also into an accomplishment was the fact that as a start-up we were entering a new country outside Europe in such a short time since our start. And the last challenge, but a really important one, was to keep the Indonesian company working and growing with us.

We are happy to have our system working in such an exotic country for two years now, and we are looking forward to expanding our SaaS to other countries on different continents. We are ready to help you build your Fintech Business!