OJK Tightens Access to Paylater Financing

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) will soon issue a Draft Regulation of Members of the Board of Commissioners (Rancangan Peraturan Anggota Dewan Komisioner/RPADK) as the technical regulation of OJK Regulation No. 32 of 2025 (“POJK 32/2025”) on the Implementation of Buy Now Pay Later (“BNPL”) services for financing companies and sharia financing companies.

“It will be issued in the near future and is currently undergoing document scrubbing,” stated Agusman, the Chief Executive of Supervision of Financing Institution, Venture Capital Company, Microfinance Institution, and Other Financial Services Institution (“PVML”) of OJK, to Hukumonline.

OJK aims to ensure that BNPL users possess sufficient financial capacity. The proposed minimum age requirement of 18 years (or married) and a minimum income threshold (proposed at IDR 3 million/month) are intended to mitigate the risk of non-performing financing (“NPF”). This also includes a limitation on financing from a maximum of 3 different companies to prevent over-indebtedness.