Indonesian Fintech Akulaku Faces Restrictions on BNPL Services

The Financial Services Authority (OJK) of Indonesia has placed limitations on the buy now, pay later (BNPL) operations of local fintech firm, Akulaku. This decision is a consequence of Akulaku’s inability to carry out supervisory measures requested by the OJK, specifically, restrictions relating to the distribution of financing using the BNPL scheme.

Details of the Restrictions

The OJK’s enforcement means that Akulaku is now banned from initiating any new BNPL transactions or providing BNPL financing to their existing clientele. Furthermore, the company is barred from distributing financing via channeling or joint financing schemes.

OJK’s Demand for Corrective Action

The OJK has mandated Akulaku to execute a corrective action plan that the company had proposed to the regulator on October 5, 2023. This plan is expected to address the issues raised by the OJK and help the company conform to the regulator’s requirements in its BNPL operations.