Regulatory AlertsOJK Regulation No. 32 of 2025 on the Implementation of Buy Now Pay Later (BNPL)
The Financial Services Authority (OJK) issued Regulation No. 32 of 2025 to establish a reliable digital financing ecosystem by regulating Buy Now Pay Later (BNPL) services provided by commercial banks and financing companies. The regulation mandates strict adherence to BNPL characteristics, consumer protection, information transparency, and operational standards to ensure legal certainty and financial stability. Entities currently offering BNPL must adjust their operations to comply with these new requirements within six months of the regulation's enactment.
Financial Services Authority Regulation Number 32 of 2025 concerning the Implementation of Buy Now Pay Later (Buy Now Pay Later/BNPL)
Abstract: To support the creation of a reliable digital financing ecosystem in the financial sector, regulations are required that aim to provide legal certainty, strengthen governance, and protect consumer interests and the stability of the financial services sector. The Financial Services Authority regulates the implementation of the buy now pay later (buy now pay later) business model.
The legal basis for this Financial Services Authority Regulation is: Law No. 21 of 2011 as amended by Law No. 4 of 2023; and Law No. 4 of 2023.
This Financial Services Authority Regulation governs the implementation of buy now pay later (buy now pay later/BNPL) conducted by commercial banks or financing companies, whether operating under conventional practices or based on Sharia principles. The definition of BNPL is a financing facility provided by financial service institutions through electronic systems for the purchase of goods and/or services. It regulates the characteristics of BNPL, consumer protection, cooperation, information openness, debt collection, reporting, and the cessation of BNPL implementation.
Note: This Financial Services Authority Regulation comes into force on the date of its promulgation. This Financial Services Authority Regulation was promulgated on December 15, 2025, and established on December 5, 2025. BNPL financing agreements and BNPL implementation cooperation agreements signed before this Financial Services Authority Regulation comes into force are declared to remain valid until the expiration of the BNPL financing agreement and the BNPL implementation cooperation agreement. Commercial banks or financing companies that have implemented BNPL before this Financial Services Authority Regulation is promulgated must adjust their fulfillment of BNPL characteristics within a maximum period of 6 (six) months from the date this Financial Services Authority Regulation is promulgated. Changes to BNPL agreements and changes to BNPL implementation cooperation agreements signed before this Financial Services Authority Regulation comes into force must be implemented in accordance with the provisions in this Financial Services Authority Regulation. The Financial Services Authority may establish policies different from this Financial Services Authority Regulation based on specific considerations.