The Monetary Authority of Singapore and the Financial Services Authority of the Republic of Indonesia, Otoritas Jasa Keuangan (the OJK) have signed a memorandum of understanding which, they hope, will allow them to collaborate with each other in the promotion of financial technology and foster innovation in financial services in both their realms.

The MOU will facilitate the sharing of information between the two bodies about emerging FinTech market trends and developments, and will promote joint projects on the subject. As part of it, both authorities will set up rules to help FinTech companies understand each others' regulatory regimes and the opportunities that each jurisdiction brings. This will lower barriers to entry for FinTech companies in one market that want to penetrate the other.

Mr Wimboh Santoso, the chairman of the OJK, and Mr Ravi Menon, the managing director of the MAS, signed the memorandum on the sidelines of the Indonesia-Singapore Leaders’ Retreat recently.