Indonesia: lending & credit regulation

Regulated

Indonesia lending regulated by OJK; BNPL, P2P, and microfinance under specific 2024-2026 rules

Lead regulator:: Otoritas Jasa Keuangan (OJK)
Key law:: Financial Sector Development and Strengthening Law (implementing regulations 2024-2026)
Last updated:: 2026-07-12

The OJK is the primary regulator for non-bank lending, including financing companies, microfinance institutions (LKM), and fintech platforms. Bank Indonesia oversees prudential risk management for commercial banks' credit portfolios. The regulatory framework is actively updated, with recent 2024-2026 regulations addressing BNPL, P2P lending, and MSME financing access.

Key activities such as Buy Now Pay Later (BNPL) and Information Technology-Based Joint Financing (LPBBTI/P2P) require specific OJK licenses and adherence to strict operational, consumer protection, and data reporting standards. Minimum equity requirements and risk management frameworks are enforced to ensure market stability and consumer safety.

The regulatory direction emphasizes digital ecosystem reliability, enhanced supervision of fintech lenders, and support for microfinance and MSMEs. Recent amendments adjust supervisory parameters and capital requirements to respond to economic conditions and technological developments.

Who regulates

Otoritas Jasa Keuangan (OJK)
Primary supervisor for non-bank financial institutions, including financing companies, microfinance institutions, venture capital, and fintech lending platforms (BNPL, P2P).
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Bank Indonesia (BI)
Supervises prudential risk management, liquidity, and asset quality for commercial banks' credit and financing activities.
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Core laws & rules

Financial Sector Development and Strengthening Law (2024)
Provides the legal basis for OJK regulations on financing companies, venture capital, and fintech collective financing services.
^[8][11]
OJK Regulation No. 32 of 2025 (2025)
Regulates Buy Now Pay Later (BNPL) services provided by commercial banks and financing companies, mandating consumer protection and operational standards.
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OJK Regulation No. 40 of 2024 (2024)
Establishes the framework for Information Technology-Based Collective Financing Services (LPBBTI/P2P), including minimum equity requirements.
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OJK Regulation No. 41 of 2024 (2024)
Consolidates and updates the regulatory framework for Microfinance Institutions (LKM), including classification and ownership rules.
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Licensing & registration

BNPL Provider
Financing companies and Sharia financing companies must obtain operational approval from OJK to provide BNPL services under Regulation No. 2 of 2026.
^[1]
P2P Lending (LPBBTI)
IT-based joint financing service providers must meet a minimum equity of IDR 12 billion and submit transaction data to OJK. Capital: IDR 12 billion
^[8][7]
Microfinance Institution (LKM)
LKM must be licensed and classified by OJK under Regulation No. 41 of 2024, with updated capital and governance requirements.
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Financing Company
Financing companies must comply with OJK Regulation No. 46 of 2024 and its amendments, including operational and supervisory standards.
^[5][11]

Restrictions & warnings

BNPL services must adhere to strict consumer protection principles, operational approval requirements, and prudential standards as per OJK Regulation No. 2 of 2026 and No. 32 of 2025.
^[1][6]
P2P platforms must implement user scoring for financing applications and strictly limit economic exposure, as mandated by OJK Circular Letter 19/SEOJK.06/2023.
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Banks must implement risk management frameworks for credit, property, consumption, and motorized vehicle financing, including LTV ratios and down payment requirements for housing and auto loans.
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Rural banks (BPR) and Sharia rural banks (BPRS) are subject to maximum credit granting and fund disbursement limits, with updated definitions of related parties.
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Direction of travel

Regulatory focus is on enhancing the competitiveness and flexibility of financing companies and venture capital, while strengthening supervision of microfinance institutions in response to economic slowdowns.
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OJK is promoting MSME financing access through robust governance and risk management mandates for financial institutions.
^[3]
Bank Indonesia is implementing a performance-based Macroprudential Liquidity Incentive Policy to boost credit and financing growth.
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Sources

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This guide is compiled automatically from 19 primary-source documents published by Indonesia's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.