Heaptalk, Jakarta — Indonesia’s Financial Services Authority (OJK) has stipulated a ban on buy now pay later (BNPL) payment scheme services, commonly known as Paylater, for PT Akulaku Finance Indonesia as of October 5, 2023.
As stated by the Deputy Commissioner for Supervision of Financing Institutions, PMV, LKM, and other LJK at Indonesia’s OJK, Bambang Budiawan, his party determined that the temporary ban was carried out because this Indonesian-based fintech company did not carry out the supervisory measures requested by the authorities regarding restrictions on the distribution of financing using the BNPL scheme.
According to this financing service restriction, Indonesia’s financial institutions prohibited Akulaku from carrying out business activities in distributing financing to existing and new debtors using a pay later scheme or similar financing, including channeling financing through channeling and joint financing schemes.
Furthermore, the company was also asked by OJK to carry out corrective actions as referred to in Akulaku’s corrective action plan, which OJK has responded to in Financial Services Authority Letter Number S-78/PL.11/2023 dated 5 October 2023 regarding responses to action plans regarding special supervision status.
In response to this issue, the President Director of PT Akulaku Finance Indonesia, Efrinal Sinaga, conveyed that the Management team is improving the buy now pay later product line. In its implementation, he stated that the company is committed to fulfilling the overall provisions that Indonesia’s regulators stipulated, including the OJK.
“We prioritize our business being run within a legal and compliance framework. Through multiple development efforts, we look forward to this service operating as soon as possible,” Efrinal said.
As additional information, Akulaku has officially obtained approval and business permits from the OJK following the Decree of the Members of the Board of Commissioners of the Financial Services Authority Number: KEP-436/NB.11/2018, as of April 18, 2018. In its operations, PT Akulaku Finance Indonesia provides digital-based financing access in the buy now pay later (BNPL) scheme. This service enables users to transact in multiple e-commerce platforms with approved loan limits.
