Part 2 - OJK Sandbox: Testing and Development of ITSK

Gain an understanding regarding the testing and development process of technological innovation in the financial sector by OJK.

1. Sandbox participants have a maximum of one year to pilot and develop their innovations. During this period, participants must actively test their innovations as planned, be open with OJK about information and changes, and be transparent to the public about the status of their trials.
2. If passed as a sandbox participant, participants must apply for a business license within 6 months.
3. If not passed, participants must cease operations, settle liabilities, and implement an exit policy within 3 months.

Once approved as a participant by OJK, the participant will follow the testing and development phase, which covers:

1. The implementation of the testing and development process starts from the date of issuance of the approval letter to become a participant by OJK;
2. During the Sandbox process, the participant actively conduct testing and develop innovations in accordance with the testing plan;
3. If there is change to innovation, including change to the business model, participant institutions, and testing plan, then the participant must inform the OJK of these changes. OJK may approve or reject the change plan;
4. The participant is required to (i) disclose all information and/or documents related to the implementation of the Sandbox to the OJK, (ii) participate in all activities related to the implementation of the Sandbox, and (iii) convey to the public that product, activity, service, and/or business model innovations are in the process of testing and development, by including the information in the electronic and non-electronic media used.

The duration for the testing and development of innovations shall not exceed 1 year from the date of approval as a participant. Thereafter, the participant shall submit a final report no later than 20 business days prior to the conclusion of the testing and development period.

After testing and developing innovations, OJK will conduct an evaluation and/or follow-up to declare the results to the participant. If the participant is declared to have passed, then the participant is required to submit a business permit application to the OJK.

However, if the participant does not pass, then the participant cannot re-apply for the same product, activity, service and/or business model innovation. In addition, the participant is required to (i) stop business operations, product innovations, activities, and services that use the business model tested and developed in the Sandbox, (ii) complete all their obligations to consumers and other parties, and (iii) implement the exit policy stated in the testing plan no later than 3 months after the letter of failure is submitted by the OJK.

The certificate of completion is valid for a period of 6 (six) months and may be extended at the discretion of OJK. If the participant does not apply for a business license before the certificate’s validity period expires and it is not extended by the OJK, then the completion status automatically ends is declared invalid.