JakartaGlobe-Jan 17
Buy now, pay later (BNPL) services are increasingly becoming a preferred payment option for Indonesian consumers, offering flexible installment payments without disrupting cash flow, according to data from the Financial Services Authority (OJK). Outstanding BNPL balances reached Rp 37.44 trillion ($2.2 billion) as of November 2025, comprising Rp 26.2 trillion from banking-based pay later services and Rp 11.24 trillion from the multi-finance industry, OJK data showed. Dian Ediana Rae, OJK’s chief executive for banking supervision, said outstanding BNPL loans in the banking sector grew 20.34% year on year in November, slightly slower than the 21.03% growth recorded a month earlier. The number of banking-based BNPL accounts rose to 31.47 million in November, up from 30.99 million in October. The non-performing loan ratio for BNPL remained low at 2.04%, improving from 2.5% in 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 earlier this week. The rapid expansion of BNPL reflects growing consumer reliance on installment-based payment solutions that do not require credit cards, particularly as purchasing power remains under pressure. The ease of access and seamless integration into digital transactions have made pay-later products a popular alternative for everyday spending. However, rising dependence on BNPL services also presents challenges. The OJK has stressed the importance of prudent credit assessment by financial institutions, particularly in evaluating customers’ repayment capacity. Read more at: https://jakartaglobe.id/business/indonesians-love-buy-now-pay-later-services
