Illegal Pawnbroking Activities Challenge Industry Growth in 2026

Regulatory Compliance Urged

PT Gadai ValueMax Indonesia has sounded the alarm on the growing issue of illegal pawnbroking activities, identifying them as a significant challenge for the pawnbroking industry in 2026. Ronny Reginaldo, Operational Manager of Gadai ValueMax, emphasized the need for unlicensed pawnbroking businesses to obtain proper authorization from the Financial Services Authority (OJK).

Industry Outlook Remains Positive

Despite the challenges posed by illegal operators, Ronny remains optimistic about the industry's prospects. He cited the OJK's Roadmap for Pawnbroking Development and Strengthening 2025-2030 as a key factor that will drive positive growth. The roadmap includes plans for simplified business licensing, strengthened supervision, and improved financial inclusion.

Strategic Initiatives by Gadai ValueMax

Gadai ValueMax is taking proactive steps to enhance its services. The company is developing a gold deposit product that allows customers to instantly know their loan value and access cash when needed. Ronny highlighted that the company has partnered with several banks for funding, with many banks showing interest due to ValueMax's strong service record and low default rates.

Financial Performance

As of December 2025, Gadai ValueMax reported a revenue of Rp500 billion. The overall pawnbroking industry also showed robust growth, with loan disbursements reaching Rp120.45 trillion in October 2025, representing a 38.89% year-on-year increase. The OJK noted that the credit risk in the industry remains manageable.