APAC's Fintech companies are facing a 'tech funding winter' amid high interest rates and macroeconomic challenges, with some relying on previously raised investments and others undergoing reorganization to attract new capital. Strategies such as cleaning up cap tables, stabilizing partnership deals, eliminating non-performing business lines, and incorporating alternative financing sources like debt and private credit have been employed to help Fintechs survive and potentially thrive. The region has seen a shift from payments to lending, with a focus on specialization over expansion. The long-term impact of these changes may lead to an uptick in valuations as economic conditions improve.

Foreign investment in Indonesia's FinTech sector has historically been limited due to infrastructure, regulatory restrictions, and reliance on cash-on-delivery. Since 2016, restrictions have eased, and foreign investors can now acquire significant stakes in Indonesian P2P credit providers and eCommerce businesses. The demand for consumer credit solutions in Indonesia outstrips supply, prompting non-bank financial institutions to facilitate P2P consumer lending. The OJK Regulation has brought clarity to the P2P lending sector, with over 165 FinTech companies operating, but only one has obtained a full license. Foreign ownership in P2P companies is capped at 85%, and foreign-invested P2P lenders must form a PMA Company, facing several investment and operational restrictions. Collaboration with local partners is common, and e-Money and e-Wallet businesses have grown rapidly, with no foreign ownership limits but requiring BI licenses. International investors can succeed by adapting to regulations and partnering with local providers.