December 24, 2025 | 09:51 pm
TEMPO.CO, Jakarta - Indonesia's Financial Services Authority (OJK) has officially issued a new regulation regarding "buy now pay later" (BNPL) transactions. The new policy is outlined in Financial Services Authority Regulation Number 32 of 2025 (POJK 32/2025), which came into effect on December 15, 2025.
Under the new policy, the OJK emphasizes that pay later services may only be offered by commercial banks, financing companies, or multifinance institutions. "Commercial banks can carry out BNPL transactions in accordance with the laws and regulations for banks, while financing companies must obtain prior approval from OJK to provide BNPL services," said M. Ismail Riyadi, Head of the Financial Literacy, Financial Inclusion and Communication Department at OJK, in an official statement on December 24, 2025.
The implementation of the "buy now, pay later" model can be done conventionally or based on Sharia principles, in accordance with applicable provisions. This regulation also governs the billing mechanism, reporting to OJK, and provisions for discontinuing BNPL services, whether initiated by the provider or by the order of OJK.
This POJK regulates several points, including the principles of prudence and consumer protection, special policies for assessing pay later financing eligibility, and personal data protection principles. It also regulates cooperation with other parties in providing pay-later services, as well as information transparency, billing, and reporting.
The reason OJK issued this new regulation is to provide legal certainty, strengthen governance and risk management, maintain financial services sector stability, and encourage healthy and sustainable industry growth, in line with the digital transformation of the financial services sector and the enhancement of national financial inclusion.
The use of pay later by banks and multifinance companies has grown rapidly. According to OJK data, the portion of pay later in banking amounts to 0.31 percent of total banking credit and continues to record high annual growth. In October 2025, public BNPL credit in banking amounted to Rp25.72 trillion, an increase from the previous month's Rp24.86 trillion.
In October, the number of users of the pay later banking service reached 30.99 million. Meanwhile, BNPL financing by Financing Companies in October 2025 increased by 69.71 percent compared to the previous year, reaching Rp10.85 trillion.
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