The value of buy now, pay later (BNPL) debt in Indonesia reached Rp29.59 trillion (US$1.8 billion) in April 2025, coinciding with the Idul Fitri holiday season, while outstanding online loans (known as pinjol) soared to Rp80.94 trillion, according to the Financial Services Authority (OJK).

Agusman, Chief Executive Supervisor of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services at OJK, reported that BNPL financing distributed by multifinance companies amounted to Rp8.24 trillion in April − slightly up from Rp8.22 trillion in March during Ramadan. However, the non-performing financing (NPF) rate rose from 3.48 percent to 3.78 percent, indicating growing risks in consumer credit.

Meanwhile, bank-disbursed BNPL credit stood at Rp21.35 trillion, down from Rp22.78 trillion in the previous month. The number of active BNPL accounts also declined slightly to 24.36 million in April from 24.56 million in March.

Online loans saw more substantial growth. The outstanding amount reached nearly Rp81 trillion, reflecting a 29.01 percent year-on-year increase. However, bad loans − or loans in arrears for over 90 days − also ticked up from 2.77 percent in March to 2.93 percent in April.

“In line with previous years’ trends, lending through both BNPL and online platforms spikes during Ramadan and Idul Fitri,” Agusman told an online press conference on Monday, June 2, 2025.

A January study by Pefindo Biro Kredit (IdScore) revealed that young Indonesians dominate BNPL usage. The breakdown shows:

● Millennials: 48.27 percent;

● Gen Z: 39.94 percent;

● Gen X: 11.35 percent.

Pefindo also noted that there were 48.4 million credit facilities and 16.5 million debtors − indicating that on average, each debtor holds three credit lines.

The most common BNPL transactions included:

● QRIS and similar payments: 41.9 percent;

● E-commerce purchases: 33 percent;

● Travel bookings (tickets & hotels): 21.1 percent;

● In-store purchases, especially electronics.

The data highlights the continued surge in digital consumer credit usage in Indonesia, particularly among the younger population. However, the rise in non-performing loans signals a need for greater caution and financial literacy amid the convenience of quick credit access.