Welcoming a New Chapter for BNPL Growth in Indonesia

In various perspectives, regulation is sometimes positioned as a factor that limits growth. However, in Indonesia’s financial services sector, the opposite direction is visible. Strengthening the regulatory framework actually acts as a catalyst in building a healthier foundation for industry growth. In the context of Buy Now Pay Later (BNPL), this is clearly evident. The Financial Services Authority (OJK) has issued a formal regulatory framework through POJK No. 32 of 2025, which provides clearer definitions and boundaries for BNPL services in Indonesia. Through this rule, the provision of BNPL is affirmed to be carried out only by institutions under direct supervision, namely banks and financing companies. The regulation also sets more structured standards for governance, risk management, and reporting obligations for service providers. More than just formal recognition, this policy is part of an effort to ensure financing access remains inclusive yet responsible. This is reflected in the strengthening of various provisions that encourage better governance, risk management, and consumer protection in the delivery of BNPL services. In line with the implementation of the regulation, the OJK has also provided an adjustment period for several provisions. This approach gives industry players the opportunity to ensure implementation aligns with regulatory requirements, while strengthening the foundation for a healthier, more credible, and sustainable BNPL ecosystem within the national financial system. This increasingly clear policy direction has encouraged the formation of a more accountable ecosystem. The impact is beginning to show, both in the improvement of underwriting and risk management standards, and in the strengthening of trust from consumers, banking partners, and institutional investors. In this context, regulation clearly does not limit growth. Instead, its presence ensures that growth is built on a healthy foundation. This approach also marks an important shift in the industry landscape. Innovation no longer moves beyond supervision, but rather develops within an increasingly well-directed framework. BNPL has now become part of formal financial services with a clearer position in the national financial system. With the regulatory foundation maturing, attention now turns to the significant growth opportunities ahead. Indonesia is an attractive digital financing market, supported by a large underserved population, with about one in three people not yet reached by formal banking services, alongside the rapid adoption of digital technology across various sectors. This potential is reflected in the industry’s development. The Financial Services Authority noted that outstanding BNPL financing by financing companies has reached Rp12.8 trillion, an increase of nearly 56% year-on-year. This figure shows that BNPL is no longer in the early stages of adoption but has grown into a financing alternative increasingly accepted by the Indonesian public. Behind this growth lies a demographic force. The dominance of the productive-age population, including Generation Z and Millennials who make up half of the total population, is a key driver for the BNPL industry. For this generation, speed and ease of access are basic expectations in accessing services, including financial services. This characteristic is also reflected in the user base of PT Akulaku Finance Indonesia. Around 60% of its users are aged between 18 and 29 years, showing that BNPL is growing because of its ability to meet the needs of the digital generation. The company’s performance mirrors this development. Amidst various challenges and global uncertainties, the company has consistently recorded double-digit growth. Its new financing disbursements reached Rp7.44 trillion, an increase of nearly 23% year-on-year. This achievement demonstrates that demand for prudently managed digital financing remains strong, even as society and business actors face dynamic macroeconomic conditions. It is interesting to note that the majority of transactions facilitated by the company are for essential needs. This shows that BNPL is increasingly being used as a tool to help the public manage household cash flow while meeting needs relevant to daily economic activities. Thus, the use of BNPL is no longer viewed solely as a means of consumption, but also as a financing solution that supports productivity. The rapid growth of BNPL brings the industry into a new phase of development. Along with the presence of an effective regulatory framework, growth must be accompanied by strengthened governance, improved risk management standards, and adequate consumer protection. This way, the industry will not only grow larger but also develop in a healthier and more sustainable manner. Experience in various countries shows that BNPL growth is accompanied by increased attention to consumer protection, the potential for over-indebtedness, and the need for a mature regulatory framework.