OJK Records Pawn Financing Distribution Reaches IDR 94.2 Trillion

Pay the pawn (unsplash)

JAKARTA - Chief Executive of the Supervision of Financing Institutions, Ventural Capital Companies, Micro Financial Institutions, and Other Financial Services Institutions (PVML) of the Financial Services Authority (OJK) Agusman stated that the distribution of pawnshop financing reached IDR 94.20 trillion as of February 2025.

"The total distribution of financing by pawnshops as of February 2025 reached Rp. 94.20 trillion, with a proportion of 46.05 percent in Java and 53.95 percent outside Java," Agusman said quoting Antara.

He said that the pawnshop services are now more evenly distributed to various regions outside Java, including in disadvantaged, frontier, and outermost (3T) areas.

As of February 2025, he said that there were 197 private pawnshop companies operating in 19 provinces outside Java, thus helping to increase financial inclusion in the community by offering easy and fast alternative financing.

Agusman said that the distribution of financing by pawnshops is expected to increase during Ramadan 1446 Hijri which fell last March, along with the increasing needs of the community.

However, his party has not been able to reveal the decline in the pawnshop for the March 2025 period because it is still waiting for the submission of reports by industry players.

"The distribution of financing by pawnshops for the March 2025 period is still waiting for the delivery of reports by the industry in connection with the adjustment of the deadline for submitting reports to OJK regarding national holidays and joint leave in 2025 to no later than April 17, 2025," he said.

Currently, OJK is drafting a Circular Letter from the Financial Services Authority (RSEOJK) regarding the Financial Statements of Pawn Companies and Sharia Pawn Companies.

This rule is the implementing provision of POJK Number 39 of 2024 concerning pawnshops, which among other things regulates the form, composition, and guidelines for the preparation, as well as the period and procedures for submitting periodic reports of pawnshop companies and sharia pawnshop companies.

In order to enforce compliance and integrity of the PVML sector industry, during March 2025 the OJK has imposed administrative sanctions on 11 private pawnshop companies.