The Indonesian Financial Services Authority (OJK) has implemented limitations on the buy now, pay later (BNPL) operations of the Indonesian fintech company Akulaku.
This action was taken because Akulaku did not comply with the OJK’s supervisory requests, specifically regarding restrictions on the provision of financing through the BNPL scheme.
As a result of this, Akulaku is not allowed to engage in any fresh BNPL business operations or offer BNPL funding to its current customers.
Akulaku’s corrective action plan
The limitations imposed by the OJK on Akulaku’s Buy Now Pay Later (BNPL) services are anticipated to have a considerable effect on the company.
Akulaku heavily relies on its BNPL services as a major revenue stream, and these restrictions will pose challenges for the company’s expansion efforts.
Additionally, the limitations have the potential to harm Akulaku’s standing and hinder its ability to attract fresh clientele.
Moreover, the company is forbidden from distributing financing through channeling or joint financing schemes.
The OJK’s restrictions on Akulaku’s BNPL services are a reminder of the importance of regulation in the BNPL industry.
A message to other BNPL providers?
The OJK’s decision is likely to send a message to other BNPL providers in Indonesia that they need to comply with the OJK’s regulations or face similar consequences.
The decision made by the OJK is expected to have a wider influence on the Buy Now, Pay Later (BNPL) sector in Southeast Asia.
Regulators from other countries in the region are likely to keep a close eye on the developments in Indonesia and might contemplate implementing similar measures against BNPL providers in their respective nations.
This signifies that the ramifications of the OJK’s decision extend beyond its immediate impact and could potentially shape the future of the BNPL industry throughout Southeast Asia.
