OJK Introduces Comprehensive Regulations for Paylater Services

New Regulatory Framework for BNPL Providers

The Financial Services Authority (OJK) has officially released new regulations governing the buy now pay later (BNPL) or paylater industry through POJK Number 32/2025. The regulation aims to provide legal certainty, strengthen governance and risk management, maintain financial sector stability, and promote healthy industry growth in line with digital transformation and financial inclusion initiatives.

Industry Response and Implementation

PT Akulaku Finance Indonesia has welcomed the new regulation, with Director of Finance Aan Setiawan stating that it will foster more sustainable and healthy business growth in the paylater sector. Akulaku Finance plans to strengthen its customer acquisition model by enhancing scoring models and utilizing third-party data to better assess potential customers. The company will also continue to apply business strategies aligned with OJK regulations, focusing on maintaining asset quality while pursuing growth.

Key Provisions and Impact

The new regulation mandates that BNPL services can only be provided by commercial banks and financing companies. This move is expected to enhance consumer protection and improve risk management in the digital lending space. As of November 2025, Akulaku Finance reported double-digit growth in its financing business while maintaining a non-performing financing (NPF) ratio below 1.5%. The OJK reported that BNPL financing by finance companies reached Rp10.85 trillion in October 2025, representing a 69.71% year-on-year increase, with a gross NPF of 2.79%.

Future Outlook

The new regulatory framework is expected to bring significant changes to the paylater industry by implementing stricter operational requirements. Companies will need to enhance their risk management practices and improve customer due diligence processes. While this may require additional investment in compliance and risk management infrastructure, it is anticipated to create a more stable and sustainable market environment for digital lending services.