Indonesia's Pawnbroking Industry Poised for Growth in 2026

Rising Gold Prices and New Initiatives Drive Optimism

The Indonesian pawnbroking industry is on track for a promising 2026, driven by several key factors including the rising gold prices, expansion through new branch openings, and the introduction of innovative product schemes. Guladi Aksiono, Executive Manager of PPGI, highlighted these growth drivers, emphasizing the industry's potential for continued expansion.

Challenges Ahead: Competition and Digitalization

Despite the positive outlook, Guladi acknowledged the challenges that pawnbroking businesses face, including intense competition and the imperative for digitalization. The industry must also focus on enhancing the quality of human resources to remain competitive. To address these challenges, PPGI is urging members to maintain public trust by adhering to credit agreements and providing excellent service.

Regulatory Support from OJK

The Financial Services Authority (OJK) has been instrumental in supporting the pawnbroking industry through various regulatory measures. Guladi praised OJK for its efforts in developing and strengthening the industry, including the introduction of company health assessments, licensing approvals, and reporting requirements, as well as the Roadmap for Pawnbroking Development and Strengthening.

Market Dynamics: State-owned vs Private Pawnbroking

While PT Pegadaian (Persero) remains the industry leader, private pawnbroking companies are gaining traction, with new branches opening and new companies obtaining OJK licenses. Guladi noted that while PT Pegadaian will continue to lead, private companies are expected to grow in their respective market segments.

Industry Performance and Future Outlook

As of October 2025, the pawnbroking industry's financing disbursement grew by 38.89% year-on-year to Rp120.45 trillion. Agusman, Head of Executive Supervisor for Financing Institutions at OJK, attributed this growth to the industry's potential for continued positive performance through year-end, driven by the demand for short-term financing during the holiday season. The industry's prospects remain positive, supported by the OJK's Roadmap for Pawnbroking 2025–2030.