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January 16, 2025 | 10:00 pm
TEMPO.CO, Jakarta - PT Pefindo Biro Kredit (IdScore) said that the 'buy now pay later' (BNPL) business in Indonesia showed a positive trend and is projected to grow in 2025. Based on data collected by IdScore until November 2024, the growth of BNPL facilities was recorded at 24.53 percent annually (year-on-year), with a total loan portfolio value of Rp35.14 trillion.
This figure indicates that people's consumption is still high. The growth of BNPL is projected to reach 30 percent by December 2025, in line with the projected growth of the national credit portfolio, which is also estimated to reach double digits.
Commercial banks are also predicted to be increasingly aggressive in entering the BNPL business, with significant year-on-year growth reaching 68.24 percent. "At present, the BNPL business is increasingly being accepted and integrated into conventional banking services," said IdScore President Director Tan Glant Saputrahadi at the Media Gathering event presenting the results of IdScore's research entitled "Buy Now Pay Later Business Trends and Growth in Indonesia" at the Pefindo Tower 1 Office, Indonesia Stock Exchange Building, Jakarta, on January 16, 2025.
Glant also revealed that although BNPL penetration is still concentrated in Java, especially in the Greater Jakarta or Jabodetabek area with a share of 31.71 percent, the potential for growth in other areas is still very high. In terms of users, the younger generation (Gen Z and Millennials) are still dominant as BNPL debtors. The purposes of using BNPL facilities are also diverse, such as e-commerce shopping at 33 percent, ticketing (including travel) at 21.1 percent, and other transactions such as payments via QRIS, which were recorded at 41.9 percent.
Another good news, he continued, is the trend of non-performing loans (NPL) at BNPL, which continues to show a significant decline. From a high of 6.66 percent in September 2023, BNPL's NPL stood at 3.21 percent in November 2024. This significant decline was driven by improvements in loan portfolio quality and loan acquisition, particularly in the fintech sector and with the increasing number of banks in the BUKU IV category entering this industry.
Some of the key factors affecting BNPL's loan portfolio include the BI (Bank Indonesia) rate, inflation, household consumption index, and NPLs. "With good management of these factors, the growth of the BNPL industry is expected to continue to be sustainable and make a positive contribution to the national economy," he said.
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