Indonesia’s total paylater debt soared to Rp31.55 trillion (US$1.9 billion) in June 2025, continuing its upward trajectory following the Idul Fitri celebrations at the end of March.

According to data from the Financial Services Authority (OJK), paylater debt in April stood at Rp29.59 trillion, comprised of Rp21.35 trillion from banking institutions and Rp8.24 trillion from financing companies.

The figure rose again in May to Rp30.47 trillion, with Rp21.89 trillion from banks and Rp8.85 trillion from finance companies. Notably, the distribution of paylater credit by financing companies has seen steady growth since the beginning of the year − unlike banks, which experienced a temporary dip during the transition from Ramadan to Idul Fitri.

Agusman, Chief Executive Supervisor of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services at OJK, reported that paylater credit disbursed by financing companies surged 56.66 percent year-on-year, reaching Rp8.56 trillion as of June. He also highlighted that the gross Non-Performing Financing (NPF) for paylater stood at 3.25 percent, a level he believes warrants caution.

“In response to this growth and to strengthen consumer protection, OJK is currently preparing several additional regulatory measures,” he told an online press conference of the OJK Board of Commissioners Meeting (RDK) on Monday, August 4, 2025.

Meanwhile, Dian Ediana Rae, OJK’s Chief Executive Supervisor of Banking, said that outstanding paylater credit distributed by banks reached Rp22.99 trillion in June, marking a 29.75 percent year-on-year growth, far outpacing the overall banking credit growth of 7.77 percent.

“Paylater accounts for 0.28 percent of total bank credit. Its annual growth rate is significant,” Dian said.

According to the Financial Information Services System (SLIK) report, the number of bank-issued paylater accounts hit 26.96 million as of June.

As Indonesia’s paylater ecosystem continues to expand rapidly, regulatory authorities are taking steps to ensure responsible growth while safeguarding consumers from potential credit risks.