Indonesia's Buy Now Pay Later Sector Sees Robust Growth Amid Economic Shifts

Indonesia's buy now pay later (BNPL) sector has shown remarkable growth, with the Financial Services Authority (OJK) reporting an outstanding debt of IDR 31.56 trillion (approximately $2.1 billion) as of July 2026. This figure represents a 31.22% increase compared to the same period last year, indicating a strong consumer appetite for flexible payment options.

According to OJK's Head of Banking Supervision, Dian Ediana Rae, the BNPL balance is equivalent to 0.35% of the total banking credit in the country. Despite its relatively small share, the growth rate of BNPL far exceeds the overall banking credit growth, which stood at 13.58% year-on-year in July 2026. This suggests that BNPL is becoming an increasingly popular choice among Indonesian consumers.

“The growth rate of BNPL far exceeds the overall banking credit growth, which stood at 13.58% year-on-year in July 2026.”Dian Ediana Rae, Head of Banking Supervision, OJK

The number of BNPL accounts has also risen, reaching 33.57 million in July 2026, up from 32.77 million in June 2026. This growth of approximately 800,000 new accounts in just one month reflects the increasing adoption of BNPL services across the nation.

In addition to banking institutions, the total debt from online loans and BNPL services has reached IDR 150.8 trillion ($10.1 billion). This figure includes IDR 13.62 trillion ($920 million) from financing companies and IDR 105.63 trillion ($7.1 billion) from online loans, indicating a broadening of the financial landscape in Indonesia.

While the growth of BNPL services is notable, it has experienced a slight slowdown compared to earlier months. In June 2026, the year-on-year growth rate was reported at 33.54%. Similarly, financing companies offering BNPL services have seen a year-on-year growth of 54.65%, although this too has slowed from 57.02% in the previous month.

“The number of BNPL accounts has also risen, reaching 33.57 million in July 2026.”Dian Ediana Rae, Head of Banking Supervision, OJK

Despite these fluctuations, the OJK remains optimistic about the sector's potential. Dian Ediana Rae emphasized the importance of responsible lending practices as the BNPL market continues to expand. The OJK has been actively monitoring the sector to ensure that consumer protection measures are in place and that the risk of non-performing loans remains manageable.

As Indonesia's financial landscape evolves, the BNPL sector is expected to play a significant role in shaping consumer behavior and access to credit. Analysts suggest that as more consumers become familiar with digital payment options, the demand for BNPL services will likely continue to rise, further embedding these financial products into the everyday lives of Indonesians.