Indonesian Public Increasingly Fond of Using Pay Later, OJK Head Reveals the Evidence

Indonesian residents are increasingly using Buy Now Pay Later (BNPL) services, with financing by financing companies growing 53.53% year-on-year to Rp12.59 trillion in February 2026. Agusman, the Executive Head of Supervision for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions (PVML) at OJK, stated that BNPL financing distribution by multifinance companies is expected to continue positive growth in 2026. “The growth is driven by the development of digital ecosystems and increasing demand for flexible financing, particularly from the productive age segment and communities that have not yet accessed formal financial services,” Agusman explained in a written statement on Thursday (9/4/2026). In line with these prospects, Agusman added that industry interest in offering BNPL services continues to develop, while prioritising principles of prudence, compliance with applicable regulations, and consumer protection. Recently, the Financial Services Authority (OJK) officially issued regulations on the implementation of Buy Now Pay Later (BNPL) in OJK Regulation No. 32 of 2025 (POJK 32/2025). The issuance of this regulation serves as an effort to mitigate risks from the rapid development of digital financing in the financial services sector. Under POJK 32 of 2025, BNPL implementation may only be carried out by General Banks and Financing Companies. Furthermore, General Banks may implement BNPL by referring to banking regulations, while Financing Companies must obtain prior approval from OJK before offering BNPL services. “BNPL implementation can be conducted conventionally or based on sharia principles in accordance with applicable provisions,” as stated in the written explanation, quoted on Wednesday (24/12/2025). For information, POJK 32 of 2025 regarding these Pay Later regulations has been effective since its promulgation on 15 December 2025. This POJK also regulates the characteristics of BNPL, including financing for non-cash purchases of goods and/or services, without collateral, with a certain ceiling limit, and conducted through electronic systems with agreed instalment payment schemes. In its implementation, General Banks and Financing Companies are required to apply principles of prudence, consumer protection, and personal data protection for customers/debtors in accordance with applicable laws and regulations. This POJK also regulates the obligations of BNPL providers to provide clear and easily understandable information disclosure to prospective customers/debtors and/or customers/debtors. Such information includes the source of financing funds, the amount and frequency of instalments, and other information stipulated by OJK. “This information disclosure obligation aims to enable consumers to make informed and responsible financing decisions,” he stated. In addition, provisions are made regarding collection mechanisms, reporting to OJK, and termination of BNPL implementation, either on the initiative of the provider or on OJK’s orders. OJK is also granted authority to establish certain policies, including setting the maximum economic benefit limit for Financing Companies in BNPL implementation.