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Default Cases Rise in 2025, Jakpat: Dominated by Existing Users

Default cases (locally known as gagal bayar or galbay) surged throughout 2025, with media reports highlighting communities of users deliberately avoiding online loan (pinjol) repayments. However, according to Jakpat’s findings, the spike in defaults is not driven by new users, but by existing ones who are increasingly struggling to manage their financial obligations amid economic pressure.

Jakpat conducted a survey to understand the behavior and habits of fintech users in Indonesia during the first half of 2025, involving 2,041 respondents consisting of Generation Z (39%), Millennials (42%), and Generation X (19%). The study focused on types of digital payments, namely e-wallets, banking platforms (mobile/internet and digital), and Buy Now Pay Later (BNPL), commonly referred to as paylater. It also covered types of fintech, including e-wallets, paylater, online loans (pinjol), crowdfunding, and peer-to-peer (P2P) lending.

The majority of respondents use e-wallet applications (95%), followed by paylater services (29%) and online cash loans (pinjol) (9%). Meanwhile, 45% of respondents reported using banking services, with 89% of them using mobile/internet banking and 45% using digital banking.

Stagnant Growth in BNPL Fintech

Specifically in the paylater category, Jakpat recorded a slight decline in paylater app usage compared to last year, from 31% in the first half of 2024 to 29% this year. Meanwhile, paylater users on e-wallets increased slightly from 12% to 14% in the first semester of 2025.

Nearly 60% of people use paylater because the application process is easy. Then, six out of ten users use it for urgent needs, in addition to paying debts (32%) and meeting daily needs (30%). Men tend to use paylater for daily needs and business capital. Gen Z shows the highest use for entertainment needs compared to other generations.

For the pinjol category, growth remained stagnant, moving from 8% to 9% in one year. Similar to paylater, 3 out of 4 respondents use pinjol due to its fast application process. The top three needs settled with pinjol are urgent needs (60%), debt (39%), and daily needs (38%).

Head of Research Jakpat, Aska Primardi stated that the data from the first half of 2025 shows that the number of users across various fintech platforms remains roughly the same as the previous year. While there were dynamics in rising and falling user numbers, the difference is minimal, so it can be concluded that fintech user numbers remain stable compared to the previous period.

“Another interesting fact is that even though user numbers haven’t increased, it’s possible they are using fintech services more frequently or borrowing in larger amounts. This is evident from the increase in the percentage of BNPL users on e-wallet platforms,” he explained.

Defaulting Trend

Aska also addressed the rise in default cases (galbay) early in 2025. According to him, this is a domino effect from the national economic situation. On one hand, galbay has evolved from an individual issue into a broader collective phenomenon with wide-reaching impacts.

“On the other hand, data from Indonesia’s Financial Services Authority (OJK) in the first half of 2025 shows a rise in default cases, possibly due to the current economic conditions, where basic needs prices have increased without a corresponding rise in income. This is accompanied by a trend on social media where defaulting user groups share tips on avoiding debt collectors,” he said.

When linked to Jakpat’s report showing stagnant growth, it is likely that these defaults are not from new fintech users.

“Therefore, it can be concluded that the default issue does not stem from new user growth, but from existing users who are beginning to feel overwhelmed in managing their digital financial obligations. A possible solution is promoting debt restructuring options for those unable to repay,” Aska suggested.