As of January 1, 2025, the Financial Services Authority (OJK) has introduced new updates to its regulations on online lending and Buy Now, Pay Later (BNPL) services. These changes are aimed at improving consumer protection and promoting sustainable growth in Indonesia’s financial services industry.

One of the main updates involves adjusting the maximum economic benefits for online lending services (LPBBTI). For consumptive loans, the daily benefit limit for loans under 6 months is set at 0.3%, and for loans above 6 months, it is 0.2%. Productive loans have similar adjustments, with the maximum benefits for loans under 6 months at 0.275% and for longer loans, 0.1%.

These changes are designed to improve financial accessibility for consumers and strengthen the online lending industry. By evaluating the economic conditions and development of the LPBBTI sector, OJK aims to foster sustainable growth and more efficient financial services.

The OJK also introduced stricter criteria for lenders and borrowers. The minimum age for both parties is set at 18 years or older, or married. Borrowers must also have a minimum income of IDR 3 million per month. These rules will apply to both new borrowers and lenders, as well as loan renewals, starting January 1, 2027.

Lenders are divided into two categories: professional and non-professional. Professional lenders include financial institutions, high-income individuals, and organizations with a maximum investment of 20% of their annual income in one lending platform. Non-professional lenders can invest up to 10% of their annual income.

The new regulations also apply to BNPL services. BNPL providers must now ensure that borrowers are at least 18 years old with a monthly income of IDR 3 million. Providers must notify borrowers about the risks of BNPL services and record transactions in the Financial Information Service System (SLIK).

OJK’s revised guidelines are a response to the growing demand for online lending and BNPL products in Indonesia. The regulatory updates are expected to improve financial literacy, reduce debt traps, and ensure the long-term stability of the sector.