Jakarta. The Financial Services Authority (OJK) has introduced new regulations requiring online loan borrowers to be at least 18 years old and have a minimum monthly income of Rp 3 million ($184). The measures aim to protect young people from falling into debt traps amid the growing popularity of lending apps, an OJK official announced on Tuesday.

One of the most common forms of credit utilized by younger borrowers is the "buy now, pay later" scheme offered by many e-commerce platforms.

“We want to prevent the younger generation from becoming heavily indebted while they are not yet financially independent,” said Ahmad Nasrullah, head of OJK’s Regulation and Financing Institution Department.

The new requirements are intended to minimize default risks among young borrowers while also enhancing financial literacy and promoting responsible financial management. Ahmad said easy access to consumer credit has led to an increase in borrowing among young people, many of whom lack awareness about the risks associated with debt.

“These measures aim to ensure that borrowers are financially capable of managing their obligations,” he added.

Although Ahmad did not provide detailed statistics, he noted that the rise of digital lending platforms has made it easier for younger individuals to take on loans without fully understanding the potential consequences.

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