The Buy Now Pay Later (BNPL) sector in Indonesia is on a robust growth trajectory, with projections indicating a market value increase from $6.51 billion in 2023 to $12.59 billion by 2029, reflecting a compound annual growth rate (CAGR) of 10.7%. As inflation rises and disposable incomes decline, more Indonesians are turning to BNPL schemes, which are expected to reach $7.57 billion in 2024. The booming e-commerce landscape and a significant unbanked population are key drivers of this growth. However, the sector faces challenges, including rising consumer debt levels and regulatory scrutiny, exemplified by recent restrictions imposed on Akulaku by the Financial Services Authority. Despite these hurdles, the outlook remains positive, with increased funding rounds anticipated for BNPL firms like Finture and Kredivo, aimed at expanding their offerings and addressing the needs of underbanked consumers. Overall, Indonesia is poised to lead the Southeast Asian BNPL market in the coming years.
Read the full article here.