Budi Gadai Targets 20% Growth through Strategic Enhancement

Business Expansion Strategy

PT Budi Gadai Indonesia (Budi Gadai), a North Sumatra-based pawning company, is optimistic about achieving 20% business growth by 2026. The growth strategy includes enhancing service quality, strengthening operational capabilities, and improving risk management practices. According to Budiarto Sembiring, Director of Budi Gadai, these measures are crucial to maintaining the company's competitive edge in the rapidly evolving pawning industry.

Current Performance Highlights

The company has shown robust performance in 2025 with a 31.5% increase in pawning transactions compared to the previous year, primarily driven by the successful opening of new branches. This growth aligns with the overall industry trend, where the pawning sector recorded a significant 38.89% year-on-year growth in credit disbursement, reaching Rp120.45 trillion by October 2025. The majority of this disbursement, 81.99% or Rp98.74 trillion, was in gold pawning products, indicating strong demand for liquid asset-based financing.

Industry Outlook and Challenges

While the outlook remains positive, Budi Gadai acknowledges potential challenges such as increasing competition and the need for enhanced regulatory compliance. The company is also focusing on financial education to promote the use of legal pawning services. To support future growth, Budi Gadai is maintaining a strong capital structure and healthy financial condition, ensuring sufficient flexibility to capitalize on emerging opportunities while maintaining business stability.

Future Plans and Development

While currently focused on existing pawning services, Budi Gadai is monitoring opportunities for product diversification and collateral type expansion. Any new initiatives will be implemented gradually, considering both internal readiness and regulatory requirements. This cautious yet proactive approach reflects the company's commitment to sustainable growth and adaptation to market dynamics.