Jakarta. The Financial Services Authority (OJK) is preparing stricter regulations for buy now pay later (BNPL) services operated by financing companies, including limits on the number of accounts consumers may hold and caps on spending across platforms.

The measures are aimed at reducing the risk of excessive consumer debt and potential loan defaults, said Agusman, chief executive for financing institution supervision at the regulator.

“If someone owns multiple buy now pay later accounts, it can increase the risk of default if total obligations exceed the customer’s repayment capacity,” Agusman said.

He also urged multifinance companies to strengthen credit scoring systems and improve assessments of borrowers’ repayment capabilities.

Under Financial Services Authority Regulation No. 32 of 2025 governing BNPL operations, providers are required to apply prudential principles, transparency standards, and personal data protection measures.

According to regulator data, BNPL lending surged 55.85% year on year in the first quarter of 2026 to Rp 12.81 trillion ($738 million).

Agusman said the growth was partly driven by stronger public demand for financing during the Ramadan and Eid al-Fitr holiday periods.

“Financing companies are encouraged to improve the quality of credit assessments to anticipate default risks,” he said.

Despite the rapid expansion, the quality of financing has shown improvement. Gross non-performing financing (NPF) in the BNPL sector fell to 2.51% in March 2026 from 2.79% a month earlier.

Under current Indonesian regulations, pay later services may only be operated by commercial banks and financing companies licensed by the Financial Services Authority.

Providers are also required to give transparent information regarding funding sources, installment amounts, and payment schedules to help consumers make responsible financial decisions.