Indonesia’s Financial Services Authority (OJK) emphasized that easier access to digital financing must be matched by borrowers’ understanding of risks and ability to repay. Speaking at an Indonesia Banking School lecture on digital financing, Agusman, OJK’s chief executive for supervision of financing institutions, venture capital companies, microfinance institutions and other financial services institutions, highlighted the need for financial literacy, sound governance and consumer protection as the sector expands. Artificial intelligence and machine learning can shorten financing assessments from months to seconds. Digital financing can also reach people underserved by conventional finance and support micro, small and medium enterprises, provided digital connectivity and infrastructure are available. These benefits must be balanced against repayment obligations and risks including misuse of personal data and fraud. In August 2026, outstanding buy now, pay later financing provided by financing companies rose 36.57% from a year earlier to IDR 13.61 trillion across 27.71 million accounts. Outstanding online lending increased 22.07% to IDR 106.94 trillion, with 189.77 million lender and borrower accounts. Against this growth, Agusman emphasized that industry expansion must be accompanied by sound governance and strong consumer protection.
Indonesia’s Financial Services Authority emphasizes repayment capacity and consumer protection as digital financing expands
Indonesia’s Financial Services Authority (OJK) emphasized repayment capacity, risk awareness and consumer protection during a lecture on digital financing at Indonesia Banking School. Outstanding buy now, pay later financing from financing companies grew 36.57% annually to IDR 13.61 trillion in August 2026, while online lending rose 22.07% to IDR 106.94 trillion. The remarks highlighted the need to balance wider access and faster financing decisions with sound governance and safeguards against fraud and misuse of personal data.