OJK Finalizes Regulation for Paylater Use

The Financial Services Authority (Otoritas Jasa Keuangan - “OJK”) is finalizing new regulations related to Buy Now Pay Later (“BNPL”) which is a type of unsecured non-cash financing product. This regulation will take effect for new customer acquisitions and paylater financing extensions on 1 January 2027.

“The Circular of OJK (“Circular”) on BNPL is currently in the finalization stage and is expected to be issued shortly,” said Agusman, the Executive Director of Supervision for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions (“PVML”) at OJK, to Hukumonline.

The new regulations to be issued by the OJK include requirements that must be met by BNPL users, ranging from the characteristics and scope of services, mechanisms for assessing borrower eligibility, data and information management by providers, to reporting on economic benefits or interest earned from paylater services. As stipulated in the BNPL provisions of Regulation of the OJK (“Regulation”) No. 46 of 2024 (“Regulation 46/2024”) on the Development and Strengthening of Financing Company, Infrastructure Financing Company, and Venture Capital Company, which is an amendment to Regulation No. 35/Regulation.05/2018 and Regulation No. 10/Regulation.05/2019 .

“This is done to support the healthy growth of the BNPL business while considering consumer protection principles,” he concluded.