Buy Now, Pay Later (BNPL) services are increasingly preferred by Indonesian consumers, offering flexible instalment payments without disrupting cash flow, according to the Financial Services Authority (OJK).
Outstanding BNPL balances reached Rp 37.44 trillion as of November 2025, with Rp 26.2 trillion from banking-based services and Rp 11.24 trillion from the multifinance sector, the Jakarta Globe reported, citing OJK data.
Dian Ediana Rae, OJK’s Chief Executive for banking supervision, said banking-sector BNPL loans grew 20.34% year on year in November, slightly slower than October’s 21.03% rise.
The number of banking-based BNPL accounts increased to 31.47 million, while the non-performing loan ratio improved to 2.04% from 2.5% the previous month.
“Banking-based BNPL loans still account for only 0.32% of total bank lending, but they continue to record strong annual growth,”
Dian said.
BNPL’s expansion reflects rising consumer reliance on instalment-based payment options that do not require credit cards, particularly amid pressure on purchasing power.
Multifinance-sector BNPL financing grew even faster, up 68.61% year on year in November.
However, the OJK warned that increasing BNPL use carries risks, stressing the need for prudent credit assessment and stronger supervision to ensure sustainable growth aligned with consumer protection principles.
To address these risks, the regulator issued Regulation No. 32/2025, covering commercial banks and multifinance companies.
Providers must clearly disclose key information, including funding sources, instalment amounts, and repayment frequency.
Violations can result in sanctions from warnings and product restrictions to fines of up to Rp 15 billion, removal of management, or withdrawal of licenses.
The OJK said the framework aims to ensure BNPL services operate under sound governance, prudent risk management, and robust consumer protection, as digital finance expands access to credit for previously underserved consumers.
Featured image credit: Edited by Fintech News Indonesia, based on image by rawintanpin and Faraz Ali via Freepik
