Bank Danamon Still Assessing Buy Now Pay Later Business Expansion
Jakarta (ANTARA) - PT Bank Danamon Indonesia Tbk (BDMN) has indicated it is open to entering the buy now pay later (BNPL) business as part of efforts to strengthen its retail segment penetration. However, the company remains in the stage of assessing suitable business models and distribution schemes.
"There is always interest because BNPL is part of consumer credit. But until now, we are still looking for the right form for this business," said Danamon's Vice President Director Honggo Widjojo Kangmasto during a virtual press conference on the bank's FY2025 performance in Jakarta on Thursday.
Honggo said that BNPL services are essentially a promising part of consumer credit. Nevertheless, the bank has opted for a cautious approach before deciding on expansion into this business line.
He explained that one option under consideration is distribution through a group entity, namely Home Credit Indonesia. The company is also open to the possibility of collaboration with digital ecosystems connected to its parent company's strategic network.
Additionally, the bank is weighing opportunities for synergy with the investment ecosystem held by MUFG Group across a number of startups in Indonesia, which could accelerate market penetration whilst minimising risk.
However, the company stressed that a final decision on BNPL expansion is still pending the results of a business feasibility study, including potential credit risks, digital infrastructure readiness, and regulatory dynamics.
"Going forward, the bank remains focused on strengthening its position as a conventional bank with digital capabilities, whilst continuing to explore new business opportunities that can expand the retail customer base without compromising the principle of prudence," said Honggo.
Throughout 2025, Bank Danamon recorded consolidated net profit for the year of Rp4 trillion, representing growth of 14 per cent year-on-year compared with the same period in the previous year.
On the intermediation side, the company recorded total consolidated loans and trade finance of Rp212.7 trillion as at 31 December 2025, growing 9 per cent year-on-year. Lending growth occurred across all business lines, including enterprise banking, financial institutions, consumer banking, and financing through Adira Finance.
Third-party funds grew 16 per cent year-on-year to Rp176.9 trillion, supported by increases in current accounts and savings accounts (CASA).
Meanwhile, the company's asset quality showed improvement, reflected in the non-performing loan (NPL) ratio declining to 1.7 per cent, an improvement of 20 basis points compared with the previous year. The loan at risk (LAR) ratio also improved to 8.3 per cent, falling 230 basis points on an annual basis.
"There is always interest because BNPL is part of consumer credit. But until now, we are still looking for the right form for this business," said Danamon's Vice President Director Honggo Widjojo Kangmasto during a virtual press conference on the bank's FY2025 performance in Jakarta on Thursday.
Honggo said that BNPL services are essentially a promising part of consumer credit. Nevertheless, the bank has opted for a cautious approach before deciding on expansion into this business line.
He explained that one option under consideration is distribution through a group entity, namely Home Credit Indonesia. The company is also open to the possibility of collaboration with digital ecosystems connected to its parent company's strategic network.
Additionally, the bank is weighing opportunities for synergy with the investment ecosystem held by MUFG Group across a number of startups in Indonesia, which could accelerate market penetration whilst minimising risk.
However, the company stressed that a final decision on BNPL expansion is still pending the results of a business feasibility study, including potential credit risks, digital infrastructure readiness, and regulatory dynamics.
"Going forward, the bank remains focused on strengthening its position as a conventional bank with digital capabilities, whilst continuing to explore new business opportunities that can expand the retail customer base without compromising the principle of prudence," said Honggo.
Throughout 2025, Bank Danamon recorded consolidated net profit for the year of Rp4 trillion, representing growth of 14 per cent year-on-year compared with the same period in the previous year.
On the intermediation side, the company recorded total consolidated loans and trade finance of Rp212.7 trillion as at 31 December 2025, growing 9 per cent year-on-year. Lending growth occurred across all business lines, including enterprise banking, financial institutions, consumer banking, and financing through Adira Finance.
Third-party funds grew 16 per cent year-on-year to Rp176.9 trillion, supported by increases in current accounts and savings accounts (CASA).
Meanwhile, the company's asset quality showed improvement, reflected in the non-performing loan (NPL) ratio declining to 1.7 per cent, an improvement of 20 basis points compared with the previous year. The loan at risk (LAR) ratio also improved to 8.3 per cent, falling 230 basis points on an annual basis.