Indonesia Introduces A Dedicated BNPL Regulatory Framework

The Indonesian Financial Services Authority (Otoritas Jasa Keuangan or "OJK") has issued OJK Regulation No. 32 of 2025 on the Organization of Buy Now Pay Later ("OJK Reg. 32/2025"), establishing a dedicated regulatory framework for Buy Now Pay Later ("BNPL") in Indonesia. Previously, BNPL operated under general financing regulations, without a standalone regime.

Clear Definition of BNPL

As BNPL has grown from a mere payment option into a significant part of the financial services sector, regulatory clarity became increasingly necessary. Prior to OJK Reg. 32/2025, BNPL lacked a formal definition and was often conflated with peer-to-peer lending or credit cards, particularly under OJK Regulation No. 10/POJK.05/2022 of 2022 regarding Information Technology-Based Co-Funding Services.