Debt Trap Problem at The Heart of Indonesia's Buy Now Pay Later Surge

By Editorial Team 16/04/2024
buy now pay later
Summary

ResearchAndMarkets released the "Indonesia Buy Now Pay Later Business and Investment Opportunities Databook Q1 2024 Update" report on Apr. 11. The report states that the buy-now-pay-later business in Indonesia is growing at a rate of 16.8 percent annually, reaching US$5.15 billion in 2024. With an annual growth of 11.2 percent from 2024 to 2029, the buy-now-pay-later business in Indonesia is projected to increase from US$4.41 billion in 2023 to US$8.74 billion, or around Rp 140 trillion in 2029.

The report also mentioned that rising inflation and declining disposable income have led millions of Indonesians to adopt buy-now-pay-later schemes over the past 12 months. The rapid growth of the e-commerce market and the high number of people without bank accounts are also major drivers of adopting pay-later services. "These factors will continue to support the growth of the pay-later market in 2024," the report quotes. Indonesia is predicted to lead the growth of the pay-later industry in Southeast Asia over the next two years.

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