Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) has issued OJK Regulation No. 32 of 2025 on the Implementation of Buy Now Pay Later (“POJK 32/2025”), which came into force on 15 December 2025. The regulation establishes a dedicated framework governing BNPL services in Indonesia and applies to Commercial Banks and Financing Companies, whether operating conventionally or under sharia principles. POJK 32/2025 formally recognizes BNPL as a regulated financing product and sets out mandatory characteristics, including non-cash financing for goods and/or services, unsecured financing, specified credit limits, instalment-based repayment, and electronic onboarding and approval mechanisms.
POJK 32/2025 further requires BNPL providers to implement prudential principles, consumer protection measures, and personal data protection standards in accordance with applicable OJK regulations. Commercial Banks and Financing Companies may cooperate with third parties, including e-commerce platforms, provided such cooperation is documented in written agreements and maintains transparency toward consumers, including clear disclosure of the BNPL provider and lawful use of customer data. The regulation also introduces mandatory information disclosure obligations and a sanctions regime for non-compliance, with administrative fines reaching up to IDR 15 billion, alongside possible business restrictions or license revocation.
The regulation reflects OJK’s broader effort to formalize and standardize the rapidly growing BNPL sector while balancing financial innovation with sound risk management and enhanced consumer protection. Existing BNPL agreements entered into prior to the enactment of POJK 32/2025 remain valid until expiry, although existing providers must align their products with the new regulatory requirements within six months from the regulation’s effective date.
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