Jakarta, ThedailyID — Indonesians are increasingly turning to financing options outside traditional banks. The trend includes online loans, buy now pay later (BNPL) services and pawnshops.
The Financial Services Authority (OJK) recorded 50.73% year-on-year growth in pawnshop financing in July 2026. OJK also reported strong growth across several digital financing sectors.
“Online loans grew 24.76%, bank buy now pay later grew 31.22% year-on-year, and buy now pay later from financing companies grew 54.65%,” OJK Chief Executive Officer Friderica Widyasari Dewi said during a meeting with Commission XI of the House of Representatives in Jakarta, Wednesday (02/09/26).
Despite the rapid growth, OJK said credit risks remain under control. The risk ratio for online loans stood at 4.32% as of July 2026.
Banks still dominate lending across Indonesia’s financial services sector. Commercial banks accounted for 90.10% of total lending, followed by financing companies at 5.06%, rural and Islamic rural banks at 1.77%, pawnshops at 1.59%, and online loans at 1.04%.
Meanwhile, bank lending grew 13.58% year-on-year in July. Investment loans led the growth at 25.13%, while working capital loans increased 11.04%, up from 8.49% in June.
Friderica said the stronger lending figures point to improving business activity, including signs of recovery in financing for micro, small and medium enterprises.
The data highlights a growing appetite for alternative financing, even as conventional banks continue to control the majority of Indonesia’s credit market.
