Indonesia requires licenses for financial influencers

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Indonesia tightens rules

Highlights

Indonesia will require disclosure of paid financial promotions.
Influencers need licenses to recommend investment assets.
Companies are responsible for influencer marketing content.

New rules for paid promotions

Indonesia’s Financial Services Authority, known as OJK, issued guidelines requiring clearer disclosure when influencers are paid to promote financial products. The rules also make companies responsible for information shared by influencers under marketing agreements, Bloomberg reports.

Crypto influencers will also need certification, though the regulator has not yet specified the exact form. Companies that violate the rules can face written warnings, license revocations and fines of up to 15 billion rupiah.

The guidelines are meant to improve financial literacy while protecting consumers from misleading promotions and market manipulation. The regulator has already shown it is willing to act. In February, OJK fined an influencer 5.4 billion rupiah, or about $300,785, for manipulating stock prices.

Retail investors drive the crackdown

The rules come as younger investors rely more heavily on social media for market advice. Government data shows that more than half of Indonesia’s retail investors are under 30, a group more likely to encounter investment content on TikTok, Instagram, YouTube and other platforms.

Indonesia is not alone. Singapore and India have also moved to tighten oversight of financial influencers as regulators try to separate education from advice, and paid promotion from independent commentary.

For Indonesia, the timing is sensitive. The country is trying to improve confidence in its stock market after MSCI warned earlier this year that it could downgrade Indonesia’s classification because of concerns over transparency and market accessibility. The benchmark stock index has fallen 32% this year, making it the world’s worst performer.

A credibility test for Indonesia’s market

The crackdown matters because financial influencers now sit between regulated markets and retail investors. When their advice is paid, unclear or misleading, the damage can spread quickly.

Indonesia’s market is already under pressure. A 32% slump in the benchmark index, MSCI’s warning and the rise of young retail investors make trust more important. Stronger rules may not stop speculative content, but they can make it harder for companies and influencers to hide commercial interests behind casual social media posts.

We also reported South Korea Democratic Party seeks asset disclosure for crypto influencers over manipulation risks.

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