The Financial Services Authority (OJK) revealed that Indonesian Paylater debts jumped by 48 percent from the same period of the previous year to Rp20.5 trillion (US$1.3 billion), while the Buy Now Pay Later (BNPL) receivables in financing companies and banks were recorded at Rp30.36 trillion.
“BNPL financing by finance companies increased by 63.89 percent year-on-year (YoY) or to Rp8.59 trillion,” Chief Executive for Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions (LKM), and Financial Services Institutions (LJK) at OJK, Agusman, said on Tuesday, January 7, 2025.
The distribution of paylater financing in financing companies also drives an increase in the level of late payments or non-performing financing (NPF). Gross NPF rose from 2.76 percent in October 2024 to 2.92 percent in November 2024.
The majority of paylater financing is currently distributed by banks, reaching Rp21.77 trillion, up 42 percent compared to November 2024. Meanwhile, the number of paylater users in banks increased from 23.27 million accounts to 24.51 million accounts.
Dian Ediana Rae, Chief Executive of Banking Supervision at OJK, is optimistic that banks will expand consumer credit through paylater.
“I think it demonstrates our banking concern for the needs of the community in general. The community that needs it at a level that can actually be said as small credit,” he said.
